BlackRock’s iShares Bitcoin Trust shed $527.84 million in net outflows on Wednesday, the second-largest single-day redemption since the fund launched in January 2024, as U.S. military strikes on Iran triggered a broad risk-off wave across crypto markets.
The outflow pushed total U.S. spot Bitcoin ETF net redemptions to $733 million for the session — the largest single-day withdrawal since February — extending the cohort’s losing streak to eight consecutive trading sessions, according to Farside Investors data. No major ETF recorded net inflows on the day. Fidelity’s Wise Origin Bitcoin Fund and ARK Invest’s ARKB also posted outflows, though substantially smaller than BlackRock’s figure.
BTC fell as much as 3.6% over the 24-hour window, touching an intraday low of $72,792 — its weakest level since April 13 — before recovering slightly to the $73,200 range. The slide followed fresh U.S. airstrikes on southern Iranian targets. Iran’s Revolutionary Guards said they retaliated and warned future responses would be more decisive. Kuwait reported intercepting hostile drones and missiles, raising the probability that the Strait of Hormuz disruption extends beyond a brief flare-up.
The eight-session outflow streak has now pulled more than $2 billion from U.S. spot Bitcoin ETFs, reversing the bulk of the $1.26 billion in net inflows recorded the prior week, per Farside. The only larger single-day outflow for IBIT occurred in early February, when a macro-driven sell-off triggered $583 million in withdrawals.
Macro headwinds are compounding the geopolitical pressure. CME FedWatch data shows roughly 72.6% probability of at least one additional Fed rate hike by year-end — a level that historically suppresses demand for non-yielding assets. A Treasury liquidity operation expected between May 28 and June 5 could drain approximately $150 billion from dollar-denominated markets, according to CoinDesk, further tightening the risk environment.
Desk-level analysts are closely watching $70,000 as the key technical and psychological support floor for BTC. A clean break below that level would likely trigger a fresh cascade of stop-loss orders and accelerate ETF redemptions. On the upside, a sustained reclaim of $75,000 is widely cited as the minimum threshold to attract institutional re-entry flows.
Cumulative net inflows since the January 2024 launch of U.S. spot Bitcoin ETFs remain substantially positive at approximately $15 billion over the full lifespan of the products — but the current pace and duration of the outflow streak, combined with tightening macro conditions, keep the near-term flow outlook firmly negative.
