- A week after the Oct. 10–11 flash crash (≈$19B in liquidations), U.S. spot Bitcoin ETFs posted $1.23 billion in net outflows—their second‑largest weekly exit on record. TradingView
- On Friday, Oct. 17, category outflows totaled $366.6 million; BlackRock’s iShares Bitcoin Trust (IBIT) accounted for $268.6 million of that day’s redemptions. Across the week, IBIT’s net flow was roughly –$279 million. Farside
- Ethereum funds also saw heavy selling early in the week: on Monday, Oct. 13, U.S. spot ETH ETFs bled $428.5 million, with BlackRock’s iShares Ethereum Trust (ETHA) at –$310.1 million that day; ETH ETFs were again negative on Friday (–$232.3 million). Farside
- Context for the rout: the crypto crash followed tariff threats that rattled markets and triggered record liquidations; bitcoin briefly traded near $104,800. Reuters
- Crucial nuance: ETF outflows are investor redemptions processed by authorized participants (APs). They do not mean BlackRock “chose to sell” crypto; creations/redemptions simply adjust ETF share count to meet demand. ICI
What BlackRock did—by the numbers
The flows say more than the headlines. According to Farside Investors’ daily ledger, IBIT posted +$60.4M on Mon (Oct. 13), then a string of small negatives mid‑week, and a –$268.6M flush on Fri (Oct. 17)—summing to about –$278.6M for the week. That Friday coincided with the Bitcoin ETF category’s –$366.6M day and capped a –$1.23B weekly outflow across all spot BTC ETFs. Farside
On the Ethereum side, Farside’s dashboard shows U.S. ETH ETFs took –$428.5M on Mon (Oct. 13), led by BlackRock’s ETHA (–$310.1M). After some mid‑week stabilization, the group finished Fri (Oct. 17) with another –$232.3M daily exit. Overall, ETH ETF flows for the week were negative. Farside
Is BlackRock dumping crypto? How ETF plumbing really works
It’s tempting to read redemptions as a discretionary “sell” by the issuer, but that’s not how ETFs operate. As the Investment Company Institute explains, “The creation and redemption mechanism allows the number of shares outstanding in an ETF to expand or contract based on demand.” APs are the ones initiating creations/redemptions in the primary market; the issuer simply processes the orders. ICI
BlackRock’s own materials add detail specific to its crypto products: for cash creations/redemptions, the trust executes trades via Coinbase Prime as the Prime Execution Agent (for IBIT/ETHA). That operational setup means on‑chain transfers to Coinbase Prime wallets often coincide with creations/redemptions—and should be read as ETF mechanics, not necessarily a directional “call” by BlackRock. BlackRock
What caused the selling pressure?
The Oct. 10–11 flash crash was a macro shock: tariff threats and thin weekend liquidity triggered a cascade of forced liquidations—the largest on record—dragging bitcoin toward $104.8K and sending risk assets broadly lower. Reuters
Importantly, JPMorgan argues the slide was driven mostly by crypto‑native leverage, not mass ETF capitulation: “There was little evidence of significant liquidation in spot bitcoin ETFs,” the bank wrote, noting modest BTC ETF outflows of $220M (Oct. 10–14) and bigger pressure in ether. Late‑week ETF redemptions then accelerated, culminating in Friday’s –$366.6M day across bitcoin funds. CoinDesk
Expert voices
- Eric Balchunas, Bloomberg senior ETF analyst: “IBIT is a hair away from $100 billion — now BlackRock’s most profitable ETF by a good amount.” That helps explain why ETF flows are such a powerful sentiment gauge right now. The Block
- JPMorgan (Nikolaos Panigirtzoglou & team): “Little evidence of significant liquidation in spot bitcoin ETFs,” emphasizing that the initial wave came from derivatives and crypto‑native venues, not ETF holders. CoinDesk
Bigger picture: BlackRock’s footprint hasn’t shrunk
BlackRock just reported a record $13.46T in assets under management in Q3, with iShares ETFs (including digital‑asset products) remaining a major growth engine. In early October, IBIT was repeatedly described as nearing $100B AUM, underlining the structural investor demand that had built before the selloff. The Wall Street Journal
Forecast & analysis: what to watch next (near term: 1–4 weeks)
1) Daily flow tape (signal #1). If IBIT and peers flip back to consistent inflows, history suggests BTC can re‑challenge the $120–123K zone; persistent outflows would argue for a retest of support. Track Farside/SoSoValue’s prints each U.S. trading day. Farside
2) Technical levels. Multiple technicians are focused on ≈$107K as first major support; a decisive break could open $94K—and, on a more bearish wedge breakdown, even $74K as a tail‑risk target flagged in recent analyses. (These are scenarios, not predictions.) MarketWatch
3) Macro catalysts. Any new tariff headlines, bank‑stress jitters, or rate‑cut rhetoric can sway flows and crypto risk appetite. The late‑week equity wobble and banking headlines that hit on Oct. 17 coincided with that –$366.6M ETF day. The Guardian
4) Ethereum’s path. ETH ETF flows remain a swing factor. U.S. spot ETH funds do not stake their ether under current prospectuses, which can blunt their yield appeal vs. direct holding; watch the SEC’s posture on any future staking amendments. BlackRock
Base case: After a leverage flush of this size, flows often stabilize before re‑risking. If we see two to three sessions of aggregate net inflows into spot BTC ETFs—and no fresh macro shock—BTC has room to rebuild toward $120K+. Conversely, another multi‑day string of net outflows would keep the tape heavy and keep $107K in play. Farside
Bottom line
Yes, BlackRock’s crypto funds saw meaningful net redemptions after the crash—most visibly IBIT’s –$268.6M on Friday and ETHA’s –$310.1M on Monday. But those moves reflect investor‑driven ETF mechanics, not an issuer “pulling the plug.” The bigger story is whether flows flip back to positive; that tape—more than any single headline—will set the near‑term direction. Farside
Sources & further reading
- Core flow data: Farside Investors (daily Bitcoin & Ethereum ETF flows). Farside
- Aggregated weekly picture: The Block/SoSoValue summary of $1.23B weekly BTC ETF outflows. TradingView
- Crash context and macro: Reuters on the Oct. 10–11 liquidation wave; Guardian live markets on Oct. 17. Reuters
- ETF structure & AP role: ICI ETF FAQs; BlackRock iShares notes on Prime Execution via Coinbase Prime. ICI
- Expert commentary: Eric Balchunas on IBIT’s scale/profitability; JPMorgan on “little evidence” of ETF liquidation in the initial leg. The Block
