BlackRock’s iShares Bitcoin Trust (IBIT) recorded a $269 million outflow on Thursday, marking one of its largest single-day withdrawals since launching earlier this year. The move comes as cryptocurrency markets face renewed volatility following mixed signals from U.S. regulators about future crypto policies.
Analysts attribute the outflow to profit-taking after Bitcoin’s recent 15% rally, combined with growing concerns about potential SEC enforcement actions. ‘We’re seeing a classic risk-off pattern where institutional investors lock in gains during regulatory uncertainty,’ said a market strategist at a Tier-1 investment bank who requested anonymity due to client sensitivities.
The Securities and Exchange Commission has delayed decisions on several pending Bitcoin ETF applications in recent weeks, including proposals from VanEck and Fidelity. SEC Chair Gary Gensler reiterated concerns about market manipulation in crypto markets during Wednesday’s congressional testimony, though he stopped short of announcing new restrictions.
BlackRock’s IBIT remains the largest Bitcoin ETF with $16.2 billion in assets under management, according to Bloomberg data. Competitor Grayscale Bitcoin Trust saw $212 million in inflows during the same period, suggesting investors may be rotating between products rather than exiting the crypto space entirely.
Market participants will closely watch next week’s Federal Reserve meeting for clues about interest rate policy, which could further impact crypto asset valuations. Some analysts predict the current outflows may reverse if the SEC provides clearer guidance on crypto custody rules for institutional investors.