BlackRock dumps $213M in Bitcoin as ETF outflow streak hits 13 days

The world's largest asset manager resumed selling Bitcoin after a single day of buying, adding to a record ETF outflow streak that has erased $4.33 billion from the funds.

BlackRock deposited $213.6 million worth of Bitcoin into an exchange on Friday, resuming its selling activity after a single day of inflows, on-chain data show.

"The outflow streak has been the defining feature of this selloff — institutional conviction that looked structural in April has proven far more tactical," Alex Thorn, head of research at Galaxy, said.

The deposit followed a net inflow of 537 BTC, worth about $33.18 million, on Thursday — BlackRock's first Bitcoin purchase in over 13 days. That brief buying had sparked speculation that Bitcoin may have found a local bottom. Instead, the reversal extends a broader ETF outflow streak that has reached 13 consecutive sessions, the longest since the products launched in early 2024.

The selling has erased $4.33 billion and 59,351 BTC from spot Bitcoin ETFs since May 15, according to Galaxy Research, dragging year-to-date flows back into negative territory. Bitcoin traded at $60,843 as of Friday, down roughly 25% from its May highs, with the $60,000 level emerging as the key support to watch.

The 20-day trailing outflow window reached $5.42 billion and 73,080 BTC, the heaviest reading on record in both measures, Galaxy data show. The 7-day and 10-day windows each set new records for the most Bitcoin exiting the funds, at 39,338 BTC and 42,941 BTC, respectively.

Bloomberg senior ETF analyst Eric Balchunas noted that the roughly $4.4 billion that exited over the past month undid a recovery the funds had worked to achieve. However, he pointed to a silver lining: BlackRock's IBIT and a few peers remain positive year-to-date, and total lifetime net inflows still sit near $55 billion, less than $10 billion below the high-water mark.

"Not bad at all for this type of drawdown and negative sentiment — gold went down like this a few years after GLD debuted and 40% of the assets left, much stronger holders here so far," Balchunas said.

The institutional selling comes against a challenging macro backdrop. The Federal Reserve has maintained a hawkish hold posture, with Chair Jerome Powell signaling rates will stay elevated for the foreseeable future. The 10-year US Treasury yield remains anchored around 4.43%, suppressing risk appetite across speculative assets.

The US-Iran conflict, now in its 98th day as of June 5, has added a persistent geopolitical risk premium. CENTCOM conducted strikes on Iran's Qeshm Island on June 3, and the conflict has disrupted Strait of Hormuz shipping routes, contributing to elevated crude oil prices. Analysts directly attribute the ETF outflow acceleration that began in mid-May to the deteriorating geopolitical environment.

The pressure extends beyond Bitcoin. Ethereum ETFs have posted 17 straight outflow days, their longest streak on record, pointing to a broad risk-off shift across crypto institutional products.

For Bitcoin, the $60,000 area has now been tested twice as a significant demand zone. A failure to hold that level would expose the market to a deeper move toward $50,000, while a successful defense could set up a rotation back toward $70,000. The path of least resistance in the near term favors a short-covering bounce, but the burden of proof sits with buyers to demonstrate that $60,000 is a floor rather than a pause before further downside.

This article is for informational purposes only and does not constitute investment advice.