Bitcoin ETFs Lose $1.44 Billion in Five Days as IBIT Redemptions Deepen

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Bitcoin ETFs Lose $1.44 Billion in Five Days as IBIT Redemptions Deepen

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Bitcoin ETFs lost $299.90 million on Wednesday, their fifth straight day of outflows, bringing the total to $1.44 billion. Ether funds fared worse relative to their size, while in-kind conversions suggest some holders are changing how they hold bitcoin rather than leaving.

Bitcoin ETFs lost $299.90 million on Wednesday, extending their five-session outflow total to $1.44 billion. No major crypto ETF category finished in positive territory.

BlackRock's IBIT drives bitcoin outflows

BlackRock's IBIT accounted for $269.73 million of the $299.90 million total. Grayscale's GBTC lost another $39.13 million, while Morgan Stanley's MSBT attracted $8.96 million, the only offset.

Trading value reached $2.27 billion, and net assets closed at $93.70 billion. The five-day withdrawal represents roughly 1.5% of the category's current asset base.

The concentration in IBIT matters because BlackRock's fund has often supplied the strongest buying during bitcoin ETF recoveries. Sustained redemptions there are therefore a potential headwind for bitcoin's price, according to the report.

Ether ETFs lose more relative to their size

Ether ETFs lost $144.81 million, taking their five-session outflow total to $523.4 million. BlackRock's ETHA led with a $129.78 million withdrawal.

Net assets fell to $11.65 billion. Relative to assets under management, ether's five-day withdrawals equal roughly 4.5% of the category, close to three times the pressure seen in bitcoin ETFs.

Selling also reached smaller products: Zcash ETFs lost $14.61 million and solana funds shed $5.85 million.

In-kind conversions complicate the picture

Cash-flow data tell only part of the story. BlackRock digital-assets head Robbie Mitchnick said large holders are converting self-custodied coins into IBIT shares, with roughly $3.6 billion transferred through in-kind transactions.

These conversions can move bitcoin into an ETF without requiring investors to sell first. They reflect changing custody preferences and may not create fresh open-market demand for bitcoin.

Wednesday's data still point to forceful de-risking, especially in ether. Yet part of the market may be reorganizing how it holds crypto rather than abandoning it.

Source: Bitcoin News

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