The recent Bitcoin crash has hit BlackRock ETF investors much harder than many expected. The average IBIT investor is now down nearly 40%, and panic selling pushed $1.79 billion out of U.S. spot Bitcoin ETFs. This made it the second biggest weekly withdrawals since the funds launched.
According to ETF Store President Nate Geraci, BlackRock’s iShares Bitcoin Trust (IBIT) grew rapidly after launching in 2024, eventually reaching $44.4 billion in assets under management.
At one point in mid-2025, the average IBIT investor was sitting on roughly a 30% profit. However, after Bitcoin’s sharp correction from the October high of $126K, everything began to change completely.
Geraci says the average BlackRock Bitcoin ETF investor is now down nearly 40%, calling it a “brutal” experience for many mainstream investors who entered the market through ETFs.
The losses reflect just how quickly Bitcoin’s decline has erased months of gains for institutional and retail investors alike.
The selling pressure hasn’t stopped with BlackRock alone. U.S. spot Bitcoin ETFs recorded $1.79 billion in weekly outflows, making it the second-largest weekly withdrawal since ETFs launched in January 2024.
BlackRock’s IBIT accounted for $860 million of those redemptions and is now on track to record its seventh consecutive week of outflows, the longest losing streak in the fund’s history.
On June 25, BlackRock transferred 3,410 BTC worth roughly $209.6 million to Coinbase Prime before another day saw more than 1,000 BTC leave the ETF as investors continued redeeming shares.
Importantly, these Bitcoin sales are not BlackRock’s own investment decision. ETF issuers are required to sell Bitcoin whenever investors redeem ETF shares.
Over the past five weeks alone, IBIT has recorded more than $2.7 billion in net outflows.
The ETF selling comes as overall institutional demand continues to weaken. U.S. spot Bitcoin ETFs are now sitting on an estimated $22.42 billion in unrealized losses, based on an average Bitcoin purchase price near $82,899.
Meanwhile, Bitcoin recently fell to a yearly low of $58,126, wiping out nearly $150 billion from the crypto market before recovering modestly.
Until fresh capital begins flowing back into spot Bitcoin ETFs, market recovery could remain slow despite Bitcoin’s rebound from recent lows.
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