BlackRock’s Bitcoin ETF Hit by Record Outflows as Traders Unwind Basis Positions

BlackRock’s Bitcoin ETF Faces Unprecedented $418M Outflow as Basis Trade Unwinds

BlackRock’s iShares Bitcoin Trust (IBIT) experienced its largest single-day outflow on Wednesday, with $418.1 million exiting the fund as Bitcoin (BTC) dipped to around $82,000.

Key Highlights:

Massive ETF Withdrawals: U.S. spot Bitcoin ETFs collectively saw $754.6 million in outflows, pushing total withdrawals since February 7 to $3.6 billion, according to Farside data.
Surging Trading Volumes: IBIT recorded $4.19 billion in trading activity on Wednesday, making it the sixth most-traded ETF in the U.S., per Coinglass data.
CME Open Interest Declines: Bitcoin futures open interest on the Chicago Mercantile Exchange (CME) fell to 155,270 BTC—the lowest since November—suggesting the widely used basis trade is starting to unwind.

With liquidity tightening and investor sentiment weakening, the ETF outflows signal a shift in market dynamics that could drive further volatility in Bitcoin’s price.