After a 1.1 billion outflow in four days, why is BlackRock increasing its holdings?

Bitcoin ETF faces its first major fund outflow since 2026. According to the latest data, the US spot Bitcoin ETF has experienced net outflows for four consecutive trading days, totaling over $1.1 billion. Interestingly, amidst the overall capital outflow, BlackRock’s IBIT has been attracting funds against the trend. This divergence reflects vastly different attitudes among institutions toward crypto assets.

The True Scale of ETF Outflows

Based on SoSoValue’s statistics, the outflow situation of the US spot Bitcoin ETF is as follows:

This marks the most intense fund withdrawal since 2026. Meanwhile, spot Ethereum ETFs are also under pressure, with a daily net outflow of about $159 million, including BlackRock’s ETHA outflow of $107 million and Grayscale’s ETHE outflow exceeding $30 million.

The Real Reasons Behind the Outflows

Why are these outflows happening?

According to Nick Ruck, Research Director at LVRG Research, this ETF capital outflow mainly reflects three factors:

• Portfolio Rebalancing: Since the beginning of the year, Bitcoin has seen significant gains, prompting some institutions to adjust their allocations at high levels
• Profit Taking: Normal profit realization after previous gains, not a bearish signal
• Short-term Caution: The market entering a consolidation phase, with some funds adopting a wait-and-see attitude

Nick Ruck emphasizes that this outflow “does not fundamentally change the long-term allocation logic of institutions toward Bitcoin.” In other words, it’s a tactical adjustment, not a strategic shift.

Internal Market Divergence

The outflows are not a complete retreat but show interesting divergence:

• XRP Spot ETF: Recovered to positive inflow on the same day, recording about $8.72 million
• Solana Spot ETF: Achieved net inflow for the eighth consecutive trading day, with a daily scale of about $13.64 million
• Bitcoin and Ethereum: Face significant pressure

This indicates that institutions are not entirely bearish on crypto assets but are restructuring, with demand for certain coins remaining strong.

BlackRock’s True Intentions

A noteworthy contradiction has emerged here.

According to related reports, BlackRock’s US thematic and active ETFs chief Jay Jacobs stated in a CNBC interview on January 7th that “Bitcoin is still in the early stages”. This is a clear bullish signal, implying BlackRock believes crypto assets are far from reaching maturity.

However, BlackRock’s IBIT has also experienced outflows over the past four days. This seeming contradiction actually reflects the complexity of institutional investment:

• Long-term optimism about Bitcoin’s growth potential (early-stage view)
• Short-term tactical adjustments (profit taking)
• Possible rebalancing at certain price points

This is not bearishness but more refined capital management.

Price Performance and Technical Outlook

Bitcoin, after briefly dropping below $90,000, quickly stabilized, currently around $90,660 as of press time, with a slight 24-hour increase. This rapid rebound suggests that institutional funds continue to absorb at the lows as support.

Nick Ruck advises traders to watch several key levels:

• $95,000: Recent technical resistance
• $90,000: Current support
• ETF flow momentum: Monitoring for signs of reverse inflows
• Federal Reserve policy signals: An important macro environment reference

Summary

The continuous outflow from spot Bitcoin ETFs is indeed noteworthy, but should not be overinterpreted as institutional bearishness. It is more likely normal profit-taking and portfolio rebalancing. The key point is that major institutions like BlackRock still see Bitcoin as in the early stage and have not changed their long-term outlook. Market internal divergence is clear, with some coins still attracting capital. Going forward, it’s crucial to observe whether ETF flows reverse and whether Bitcoin can hold the $90,000 support. With technical and institutional attitudes supporting, current movements are more about high-level consolidation rather than trend reversal.