BlackRock's IBIT bitcoin ETF suffered its second-largest single-day net outflow on record, losing $528 million on Wednesday. The figure falls just short of the January record by less than half a million dollars, as Iran-linked geopolitical uncertainty drove institutional investors to exit the asset. The broader US spot bitcoin ETF complex has now logged nine straight sessions of outflows, with $228.88 million exiting the 13-fund lineup on May 28 alone.
Since May 14, the cumulative drain has pulled more than $2 billion from spot bitcoin products. This reverses weeks of accumulation and signals a notable shift in sentiment among institutional allocators. The streak's persistence suggests a structural deleveraging rather than a one-off risk-off move, with BlackRock's IBIT alone contributing $177.94 million on Tuesday's session according to BeInCrypto.
The selling pressure coincides with a hawkish tilt from the Federal Reserve, as rate-cut expectations have been pushed further into 2026. Elevated real yields and a stronger dollar are compressing risk appetite across crypto and equities alike. No SEC or CFTC actions directly triggered the exodus, but the macro tightening narrative has amplified geopolitical jitters stemming from Iran-related tensions.
Bitcoin's market dominance has remained near 52%, indicating that the outflows are concentrated in ETF vehicles rather than a broad-based crypto capitulation. Ethereum ETFs have not experienced comparable withdrawals. The correlation between bitcoin and the S&P 500 has risen above 0.6 over the past two weeks, suggesting the sell-off is more macro-driven than crypto-specific.
On-chain data shows that long-term holders have not accelerated distribution, and the Coinbase premium has turned negative, pointing to US institutional selling rather than retail or offshore dumping. Some analysts argue that the streak may be nearing exhaustion, as daily outflow volumes have begun to taper from the peak seen last week. If macro conditions stabilize, ETF flows could revert to accumulation mode quickly.