BlackRock’s Bitcoin ETF, IBIT, sold $54.8 million worth of Bitcoin. That’s based on data tracked by Farside Investors.
It was the largest one-day drop in the fund in weeks. And it dragged the entire Bitcoin ETF market into the red for a fourth straight day.
Why Investors Are Withdrawing Funds
The total losses for all the US spot Bitcoin ETFs on the day amounted to $49.7 million. That whole number was less than IBIT’s $54.8 million exit.
That’s because one small fund made money and IBIT lost money. Some of IBIT’s losses were offset by Grayscale’s lower-priced Bitcoin Mini Trust, which raised $5.1 million.
All other major Bitcoin ETFs were quiet on the day. Fidelity’s FBTC, Ark’s ARKB and the original Grayscale trust all saw zero net flow.
The losses were less and more diffuse the day before, on July 27. IBIT lost $8.8 million and Fidelity’s fund lost $2.8 million. This new drop is far more substantial and now it’s all in one fund.
In recent weeks, Bitcoin has been facing difficulties in maintaining its price above $63,000. Investors are on edge as the US and Iran have renewed tension.
That nervousness is reflected in the ETF numbers as well. If large funds such as IBIT are losing money, it could be a sign that large investors are pulling back from risk.
The Fed Meeting Is Adding Pressure
This week the Federal Reserve is meeting for its two-day policy meeting. The result comes in today.
Traders are betting a 35.8% chance the Fed will raise interest rates. That’s a significant increase from a week ago when it was 25.7%.
In general, higher rates tend to be bad for Bitcoin. They make safer assets such as bonds more appealing, and some investors sell Bitcoin before the decision is even made to avoid that risk.
IBIT is still the biggest Bitcoin ETF by far. That’s why its moves are significant to the entire market.
The same pattern occurred when IBIT accounted for 73% of a $1.79 billion outflow week back in June. The mood of one fund can influence the mood of all the other Bitcoin ETFs.
So what does this mean going forward?
Despite this, IBIT’s overall performance in 2025 was strong. Despite its worst day ever in terms of net new money, a $527.8 million outflow in November, the fund attracted over $25 billion in net new money for the year.
That record doesn’t get washed away by four rough days. But they do illustrate the speed at which sentiment can change when investors are focused on a big Fed decision.
It’s also interesting to see the shift into Grayscale’s lower-cost fund. It indicates that some investors are not completely exiting Bitcoin. They may just be moving to a fund with lower fees while they wait for the Fed’s answer.
Some of this outflow pressure could abate quickly if the Fed does not raise rates. If the rate were to increase, it would likely drive more funds out of Bitcoin ETFs in the short term.
In any case, everyone is watching IBIT. It is the biggest fund in the space and its next move will likely dictate the market’s next move once again.
