BlackRock’s iShares Bitcoin Trust (IBIT) posted a $71.8 million redemption on October 16, extending a difficult stretch for U.S. spot crypto ETFs. The move was not a proprietary BlackRock bitcoin sale; it reflected ETF investors redeeming shares, which forced the fund to reduce its underlying bitcoin holdings. IBIT alone accounted for the bulk of the $82.4 million in total U.S. spot bitcoin ETF outflows that day.
From October 12 through October 16, spot bitcoin ETFs recorded five-day net withdrawals of about $228.4 million. Daily flows swung from -$65.4 million on October 12 to +$175.7 million on October 13, then back to -$261.4 million on October 14, +$5.1 million on October 15, and -$82.4 million on October 16. Ethereum ETFs fared worse, losing roughly $320.1 million over the same period; on October 16 alone they saw $69.7 million in outflows, reportedly all from BlackRock’s ETHA. Combined bitcoin and ether ETF withdrawals totaled around $548.5 million for the five sessions.
The outflows come as bitcoin slipped below $80,000 during the week, pressured by hotter inflation and economic data that raised concerns U.S. interest rates could stay elevated longer. ETF redemptions can add spot selling in an already weak market. Still, IBIT remains the largest U.S. spot bitcoin ETF with about $62.5 billion in net assets and roughly $65.6 billion in cumulative inflows since launch. The key signal ahead is whether ETF flows recover as bitcoin stabilizes: continued withdrawals would reinforce the risk-off tone, while renewed inflows could indicate investors are using the decline as an entry point.
