Bitcoin (BTC) News: Why BlackRock Sold $1 Billion in Bitcoin

BlackRock sold $1.01 billion worth of Bitcoin in five days last week, triggering speculation about a bearish stance on the cryptocurrency. However, the sales stemmed from routine redemptions in its iShares Bitcoin Trust (IBIT), the world’s largest spot Bitcoin ETF. When investors sell IBIT shares, BlackRock must return the equivalent Bitcoin, leading to forced liquidations totaling around 15,000 BTC, deposited into Coinbase Prime for settlement. The selling was not a strategic move by BlackRock but a mechanical process tied to investor behavior. The firm continued expanding its crypto offerings, filing a second tokenized fund with the SEC the same week, signaling no withdrawal from Bitcoin. Arkham’s on-chain data confirmed the sales were spread evenly across days, aligning with standard redemption procedures rather than a rushed exit. BlackRock was not the only ETF issuer selling Bitcoin. U.S. spot Bitcoin ETFs collectively lost $1.26 billion in the week of May 18–22, marking the heaviest weekly outflow of 2026. Jane Street and Goldman Sachs also reduced their Bitcoin ETF holdings, reflecting broader institutional caution amid market volatility. The shift reversed April’s record inflows of $1.97 billion, as Bitcoin’s price hovered near $80,000. The outflows coincided with market jitters over Middle East tensions and high Treasury yields, prompting investors to pull back from risk assets. Despite the heavy selling, Bitcoin’s price stabilized around $77,000, dipping briefly to $74,300 before recovering. The resilience suggests other buyers stepped in to offset the institutional outflows, maintaining support for the asset. While BlackRock’s sales dominated headlines, the broader trend indicates a cooling in institutional demand for Bitcoin ETFs. The firm’s continued crypto investments and Bitcoin’s price stability hint at underlying confidence, but the recent outflows underscore sensitivity to external economic pressures.