BlackRock's IBIT Tops Daily Bitcoin ETF Outflows as Institutional Appetite Cools

U.S. spot bitcoin ETFs remained under pressure, according to CoinDesk, with the group posting a combined net outflow of $213.85 million in a single session. The category has now logged withdrawals for 18 straight trading days, underscoring a continued pullback in institutional allocations. BlackRock's iShares Bitcoin Trust (IBIT) recorded the largest daily redemption, with net outflows of $148.5 million. Grayscale's Bitcoin Trust (GBTC) also extended its streak, losing $87.91 million on the day. A handful of products still attracted fresh money, though the inflows were insufficient to offset broader selling. Fidelity's FBTC posted $4.04 million in net inflows, Grayscale Mini BTC drew $17.52 million, and WisdomTree's BTCW added $9.8 million. Flow data suggest some institutions are rotating within the sector rather than exiting entirely, shifting allocations toward smaller ETFs or those with different fee structures. Even so, these secondary products have limited capacity to absorb capital, pointing to portfolio rebalancing as the dominant theme rather than a broad return of institutional demand. Analysts cited several headwinds: rotation from volatile digital assets into large-cap AI-linked technology stocks, ongoing regulatory uncertainty keeping some investors on the sidelines, and expectations that interest rates may stay elevated, prompting short-term return seekers to trim crypto ETF exposure for risk management. With outflows still concentrated in the largest products, sector sentiment remains constrained. Absent a return to sustained net inflows among the leaders, investors may continue to take a cautious view of institutional demand for U.S. spot bitcoin ETFs.