IBIT Bleeds $528M in Its Second-Worst Day on Record
BlackRock’s IBIT recorded a $528 million net outflow on Wednesday, May 28, its second-largest single-day redemption since the fund’s January 2024 launch. The figure missed the all-time single-day outflow record by less than $500,000, according to a CoinDesk report. Bitcoin (BTC) traded near $72,900 as the outflow data emerged, down roughly 3.7% in 24 hours.
What Drove the Redemptions
U.S. airstrikes on an Iranian military site triggered a broad risk-off wave across financial markets on Wednesday.
Cryptocurrency majors sold off 3% to 4%, and nearly $1 billion in leveraged positions were liquidated across exchanges. IBIT, as the largest and most liquid spot Bitcoin ETF in the U.S., absorbed the brunt of institutional de-risking.
The fund’s assets under management have made it the primary vehicle for institutional investors seeking rapid, exchange-traded exposure to Bitcoin. When macro conditions deteriorate sharply, redemptions concentrate there first.
Background
Spot Bitcoin ETFs launched in the United States in January 2024 after years of regulatory resistance from the SEC.
IBIT quickly became the dominant product, attracting tens of billions of dollars in net inflows over its first year and helping push Bitcoin to an all-time high above $108,000 in late 2024. The funds transformed how large institutions and wealth managers access Bitcoin, removing the need to hold the asset directly in self-custody wallets.
Wednesday’s outflow sits alongside a broader pattern of ETF volatility tied to macro shocks. Ethereum (ETH) ETF products also deepened their own outflow streak this week as geopolitical risk resurfaced across asset classes.
Also Read: Why Sui Keeps Beating Ethereum On Speed But Still Trails On Trust
What Comes Next
The proximity to the all-time outflow record will draw attention to whether Wednesday’s move marks a one-day shock or the start of a sustained redemption cycle. Investors will watch Thursday’s daily flow figures closely.
A single large rebound day would suggest the Wednesday move was purely event-driven. Sustained outflows across multiple sessions would signal something more structural, potentially testing Bitcoin’s support in the $70,000 to $72,000 range.
The Strait of Hormuz situation and any escalation in U.S.-Iran tensions remain the primary macro variables traders are monitoring alongside ETF flow data.
Read Next: Gorilla Technology Posts 55% Revenue Jump, Eyes $500M Target
