BlackRock pulls $343.3M from spot crypto ETFs in early February amid market volatility

Published: 2026-02-07 12:04:35 |

BlackRock’s spot crypto ETFs registered a combined net outflow of about $343.3 million from February 2–6, driven by sizeable redemptions from its spot Bitcoin ETF (IBIT, ~$191.3M) and spot Ethereum ETF (ETHA, ~$152M). IBIT saw inflows on Feb 2 but then larger redemptions later in the week; ETHA experienced multiple withdrawals (notable outflows on Feb 2, Feb 4–6) partially offset by a Feb 3 inflow. The sell-off occurred amid heightened market volatility — Bitcoin briefly dipped below $65,000 and Ether traded near $2,000 — prompting risk-off positioning, liquidations and trimming of exposure after January’s rally. Weekly redemptions were sizable but remained much smaller than late-January’s roughly $1.2 billion outflow. Earlier reporting also noted heavy ETF outflows across issuers on Sept 22–23 of the prior year, including a $980M single-day withdrawal from BlackRock’s Bitcoin ETF and broader spot-ETF redemptions that coincided with a crypto market correction; those earlier moves illustrate how institutional ETF redemptions can amplify selling pressure. For traders: monitor IBIT and ETHA flows as short-term liquidity signals, watch for continuing outflows that may increase selling pressure on BTC and ETH, and prepare for elevated volatility and potential rapid price swings in both directions.

Bearish

Significant net outflows from BlackRock’s IBIT and ETHA increase short-term selling pressure on BTC and ETH. The timing — coming after a January rally and during heightened volatility — suggests risk-off repositioning and liquidations that can trigger further downward moves. Although the weekly outflow (~$343M) is smaller than late-January’s ~$1.2B redemption, continued or accelerating ETF redemptions reduce liquidity in spot markets and can exacerbate price declines, especially if concentrated in Bitcoin and Ethereum products. For short-term trading, expect higher volatility, wider bid-ask spreads, and increased risk of rapid drawdowns. Over the longer term, intermittent ETF outflows are part of flow-driven market cycles and may be absorbed if demand returns, but persistent institutional redemptions would remain a bearish pressure on price recovery.