BlackRock's Bitcoin Trust Sees $405M Outflow, but Firm Isn't Selling

The iShares Bitcoin Trust from BlackRock (IBIT) recorded a net outflow of $405.3 million on November 2, prompting widespread speculation that BlackRock itself was offloading its Bitcoin (BTC) holdings. In reality, the asset manager is not trading on its own behalf.

It is the clients who are withdrawing their funds. For those holding BTC, the distinction has mixed implications, as redemptions still send coins out of the trust and into the broader market.

JUST IN: BlackRock sells $405.3 million worth of $BTC. pic.twitter.com/yVkaXGv6gg

— Whale Insider (@WhaleInsider) November 3, 2026

Is BlackRock Selling Bitcoin, or Are Its Clients?

On X, the narrative gained traction after Whale Insider described the outflow as a sale by BlackRock.

Spot Bitcoin exchange-traded funds (ETFs) directly hold BTC. When investors redeem their shares, the fund releases coins to align with its reduced share count.

As a result, the $405.3 million figure stems from client actions, not a change in BlackRock's own stance. The firm charges a 0.25% annual fee on IBIT assets, meaning outflows reduce its revenue.

According to Farside, this was IBIT's biggest single-day outflow since June 26. Total net flows across US spot Bitcoin ETFs stood at negative $398.6 million.

Fidelity's FBTC was the sole fund to see inflows, bringing in $6.7 million.

Why Did One Day Erase a Week of IBIT Inflows?

The turnaround was sharp. Between October 26 and October 29, IBIT drew in $410.6 million over four trading sessions. The November 2 withdrawal nearly wiped out all of that.

When Friday's $233.7 million outflow is added, IBIT lost $639 million across two sessions. Across all funds, total withdrawals surpassed $1.04 billion.

The selling started a day after the largest crypto hack on record hit Binance. TRM Labs linked the $6.36 billion theft to TraderTraitor, a hacking group from North Korea. The assets taken included 18,270 BTC drained from a Binance hot wallet.

Additional factors included caution ahead of the November 3 US midterm elections and a decline in tech stocks.

Nevertheless, the outflows remain modest compared to IBIT's total cumulative net inflows of $65.9 billion since its launch in January 2024.

The key question is whether redemptions will continue. Spot ETFs have become the primary vehicle linking institutional sentiment to BTC's price. If sustained outflows occur, they would test the support level highlighted in the November Bitcoin outlook.