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BlackRock’s iShares Bitcoin Trust (IBIT) recorded a $405.3 million net outflow on November 2, a move that triggered widespread claims on social media that the asset manager was selling Bitcoin. BlackRock is not trading for itself; the outflow resulted from clients redeeming their shares.
The distinction matters for market mechanics. Spot Bitcoin exchange-traded funds hold BTC directly. When investors redeem shares, the fund must release coins to match the reduced share count. Consequently, the $405.3 million exit pushed coins from the fund onto the open market, reflecting client decisions rather than a change in BlackRock’s own position. The firm earns a 0.25% annual fee on IBIT assets, meaning these outflows directly reduce its revenue.
Client redemptions drive the exit
The narrative that BlackRock was selling Bitcoin spread after the account Whale Insider posted a tweet on November 3, 2026, stating, “JUST IN: BlackRock sells $405.3 million worth of $BTC.” The post framed the fund-level outflow as an action by the asset manager itself.
According to Farside, the November 2 outflow was IBIT’s largest single-day outflow since June 26. Total US spot Bitcoin ETF flows reached negative $398.6 million on that day. Fidelity’s FBTC was the only fund to see inflows, adding $6.7 million to its holdings.
Market context and prior inflows
The reversal in IBIT flows was abrupt. The fund had attracted $410.6 million over four sessions between October 26 and October 29. The November 2 exit cancelled nearly all of that previous week’s capital. Including a $233.7 million outflow on the preceding Friday, IBIT shed a total of $639 million in two sessions. Across all US spot Bitcoin funds, withdrawals topped $1.04 billion.
The selling began a day after the largest crypto hack on record hit Binance. TRM Labs attributed the $6.36 billion theft to TraderTraitor, a North Korean hacking unit. The attack included the draining of 18,270 BTC from a Binance hot wallet.
Market caution ahead of the November 3 US midterm elections and a concurrent sell-off in tech stocks added further pressure to the sector. Despite the recent exits, the outflows remain small relative to IBIT’s $65.9 billion in cumulative net inflows since its launch in January 2024. Spot ETFs serve as the primary channel connecting institutional sentiment to Bitcoin’s price, and sustained redemptions would test the support levels identified in recent market outlooks.
Frequently Asked Questions
Did BlackRock sell its own Bitcoin holdings?
No. The $405.3 million outflow from IBIT on November 2 was caused by client redemptions. BlackRock does not trade Bitcoin for itself; the fund released coins to match the reduced share count requested by investors.
What was the largest IBIT outflow before November 2?
According to Farside, the November 2 outflow was IBIT’s largest single-day outflow since June 26. The fund had previously seen a $233.7 million outflow on the Friday prior to November 2.
