BlackRock dumps $1B Bitcoin as ETF outflows hit yearly high

BlackRock has recorded more than $1 billion in Bitcoin sales over the past week as U.S. spot Bitcoin ETFs posted their largest weekly outflow of 2026.

Summary

• Arkham Intelligence data showed BlackRock-linked Bitcoin sales reached nearly $1.01 billion last week, coinciding with $1.26 billion in total U.S. spot Bitcoin ETF outflows.
• Bitcoin briefly fell below key support levels during the sell-off before recovering to around $77,443, while institutional investors reportedly reduced exposure amid rising market uncertainty.
• Despite ETF outflows, BlackRock recently filed a second Securitize-powered tokenized fund with the SEC after BUIDL grew to roughly $2.3 billion in assets.

According to data shared by Arkham Intelligence on Monday, BlackRock sold Bitcoin every trading day last week, bringing its total weekly disposal to nearly $1.01 billion. The withdrawals came during a sharp downturn across crypto markets, with Bitcoin and major altcoins remaining under pressure for most of the week.

Arkham Intelligence data showed the outflow was BlackRock’s biggest weekly Bitcoin reduction since November 2025. At the same time, the entire U.S. spot Bitcoin ETF market recorded combined weekly outflows of roughly $1.26 billion, suggesting BlackRock accounted for most of the capital leaving the sector.

The sell-off unfolded as market volatility intensified following renewed weakness in crypto prices and fading appetite for risk assets. Bitcoin briefly slipped below key support levels during the week before staging a modest rebound heading into Monday trading.

Why are institutions pulling money from Bitcoin ETFs?

Several analysts and market trackers linked the ETF withdrawals to defensive positioning by institutional investors as uncertainty continued to weigh on digital assets.

According to the original market data referenced by Arkham Intelligence, institutions appear to be reducing exposure amid concerns that bearish momentum in Bitcoin could deepen if macroeconomic conditions worsen. Bitcoin (BTC) was trading near $77,230 at press time, relatively neutral over the previous 24 hours, though still well below levels seen earlier this month.

Meanwhile, the decline in ETF demand comes after months of strong inflows that helped push Bitcoin toward new highs earlier this year. As reported earlier by crypto.news, spot Bitcoin ETFs had previously attracted steady institutional allocations during periods of easing inflation expectations and improving market sentiment.

Recent outflows now indicate that some large investors are choosing to rotate capital away from crypto-linked products while waiting for clearer market direction. Data from CoinGlass and SoSoValue over the past several weeks has also shown weakening momentum across derivatives markets, including softer open interest and fluctuating funding rates during major price swings.

How does BlackRock’s crypto strategy continue beyond Bitcoin ETFs?

Even as BlackRock trims Bitcoin exposure through its ETF operations, the asset manager continues expanding into blockchain-based financial products elsewhere.

BlackRock recently filed a second tokenized fund application with the U.S. Securities and Exchange Commission using infrastructure developed by Securitize. The filing follows the rapid growth of BUIDL, BlackRock’s tokenized U.S. Treasury fund launched with Securitize in March 2024.

BUIDL has grown to around $2.3 billion in assets and currently stands as the largest tokenized Treasury fund globally. Securitize, which operates as both an SEC-registered transfer agent and broker-dealer, provides the compliance and tokenization framework supporting the fund.

The new filing signals that BlackRock is continuing to develop blockchain-based investment products even while institutional demand for spot Bitcoin ETFs weakens. At the same time, firms including Franklin Templeton, Fidelity, and State Street are also exploring tokenized asset products as competition in the real-world asset sector accelerates.

The filing also comes as the CLARITY Act moves toward a full Senate vote after clearing the Senate Banking Committee in a bipartisan vote earlier this month.