Bitcoin drops below $73,000! BlackRock's IBIT loses $733 million in one day, nearly matching the record for the largest outflow in history

U.S. spot Bitcoin ETFs recorded a $733.4 million net outflow on Wednesday, the largest single-day outflow since the end of January; BlackRock’s IBIT blasted out $527.8 million in a single day, just $460,000 shy of the all-time record. Bitcoin fell below $73,000 in Asian morning trading on Thursday; with accelerated derivatives liquidations driving the sell-off, analysts are closely watching the $70,000 support level.
(Background: Bitcoin slid to $75,500, and Ethereum fell below $2,100—while the Dow hit a record high, crypto weakened on its own)
(Additional context: Quant giant Jane Street cuts Bitcoin ETF holdings—IBIT and FBTC both down more than 60%)

Key Highlights

• Eleven U.S. spot Bitcoin ETFs saw a net outflow of $733.4 million on Wednesday, the largest single-day outflow since January 29
• BlackRock IBIT recorded a $527.8 million outflow in a single day, just $460,000 away from the historical record set on January 30
• Bitcoin fell below $73,000; analysts warned that continued ETF outflows and outflow-driven bleeding could signal institutions adjusting their allocation to crypto assets

After Tuesday’s close, IBIT appeared in dark pool trading with a large block trade of $1.29 billion, and the market delivered the answer the next day. The 11 U.S. spot Bitcoin ETFs combined for a total net outflow of $733.4 million on Wednesday, ending the prior brief trend of capital inflows; heavy institutional selling pressure shrank the ETF net inflows for May to only $536 million.

LVRG Research’s Chief Director Nick Ruck said this sharp drop reflects investors’ hedging/risk-off sentiment to take profits after recent highs, while also being influenced by macro factors such as rising U.S. Treasury yields and escalating geopolitical tensions. Funds did not disappear; they rotated into traditional financial stocks. And once key price levels were broken, large-scale derivatives liquidations further dragged prices down.

IBIT—Just $460,000 away from the record

BlackRock’s IBIT saw a single-day net outflow of $527.8 million. This figure is only $460,000 short of the $528.3 million historical record set on January 30—nearly matching the worst day since the product launched. Grayscale’s GBTC followed with a $104.8 million outflow, Fidelity’s FBTC lost $60.3 million, and six other funds also recorded negative flows in tandem.

The only bright spot among the 11 ETFs was Morgan Stanley’s MSBT, which attracted $4.3 million against the trend. Analysts said the $1.29 billion IBIT dark pool block trade on Tuesday was the trigger: large sellers offloaded first in the OTC/off-exchange market, and the next day that led to a follow-on selloff cascade as others matched the selling.

Viewed from another angle, the size of this dark pool trade was larger than the total ETF net outflows for that day, indicating that off-market selling pressure ran far deeper than the on-ledger numbers suggest.

BTC underperformed the S&P 500 and Nasdaq for two weeks

Presto Research’s Research Director Peter Chung said that since mid-May, Bitcoin has shown a “unique trading pattern”—continuing to drift lower over the past two weeks—and has significantly lagged risk assets such as the S&P 500 and Nasdaq. He added that this is mainly driven by spot ETF fund outflows.

So far in May, cumulative ETF outflows have exceeded $2 billion, and total net inflows for 2026 have shrunk sharply from the peak to only $536 million. Analysts are closely watching the $70,000 level and warn that if ETF outflows keep bleeding and $70,000 is lost, it may indicate that institutions are making further adjustments to their crypto asset allocations.

There are no signs the macro pressure is easing. Asian stock markets opened lower on Thursday, with the Hang Seng Index down 0.69%. Against the backdrop of a fragile ceasefire, the U.S. and Iran struck each other again; Kuwait even activated air defense systems to intercept missile and drone threats. Oil prices jumped 3%, and risk aversion spread from equity markets to the crypto market.

Frequently Asked Questions

Why do Bitcoin ETFs see large-scale capital outflows?

The main reasons include unwinding basis trades, institutional de-risking, and risk-off sentiment triggered by rising U.S. Treasury yields. The day before, BlackRock’s IBIT saw a $1.29 billion dark pool block trade; on the next day, it sparked a chain reaction of selling pressure, resulting in a single-day net outflow of $527.8 million.

Will the $70,000 support level for Bitcoin hold?

Presto Research points out that Bitcoin has underperformed the S&P 500 and Nasdaq for two consecutive weeks. If ETF outflows continue and $70,000 support breaks, it could trigger a new round of derivatives liquidations and an institutional de-risking wave, further pressuring prices lower.