BlackRock Crypto ETFs Lose $3.5 Billion as Redemptions Spike

BlackRock saw a sharp reversal in its spot Bitcoin and Ethereum exchange traded funds during the second quarter. New filings with the SEC show that the two funds experienced a combined net decrease of $3.5 billion from capital share transactions. This shift marks a dramatic change from the same period last year, when the same funds pulled in a massive $13.9 billion increase.

The iShares Bitcoin Trust recorded $4.3 billion in contributions for newly issued shares alongside $7.2 billion in distributions for redeemed shares. This gap resulted in a net decrease of $2.9 billion for the quarter. Meanwhile, the iShares Ethereum Trust brought in $943 million in contributions and handed out $1.5 billion in distributions, leading to a net decrease of roughly $583 million.

Recent data shows some signs of life, with both funds capturing fresh inflows during early August trading sessions. Analysts note that while these recent inflows offer a brief counterweight, sustained momentum over several weeks remains the real test for a full market recovery. Traders will watch closely to see if buyers continue to return through the rest of the month.