BlackRock’s ETFs linked to Bitcoin and Ethereum experienced a sharp reversal in the second quarter of 2026. Their activity on shares changed from a net increase of $13.9 billion a year earlie
BlackRock’s ETFs linked to Bitcoin and Ethereum experienced a sharp reversal in the second quarter of 2026. Their activity on shares changed from a net increase of $13.9 billion a year earlier to a decrease of $3.5 billion. An annual gap of $17.4 billion that mainly reveals the scale of redemptions.
BlackRock’s iShares Bitcoin Trust concentrates most of the reversal. This evolution continues a sequence during which BlackRock had already sold over a billion dollars of Bitcoin via IBIT, due to redemption requests presented by investors. Between April and June 2026, IBIT recorded $4.3 billion in contributions linked to the issuance of new shares.
At the same time, distributions associated with the redeemed shares reached $7.2 billion. The balance thus stands at -$2.9 billion. The Ethereum fund ETHA also shows a decrease. Its share creations amounted to $943.3 million, against about $1.5 billion distributed in redemptions. Its net contraction thus reaches $583.4 million. Together, the two BlackRock crypto ETFs lose $3.5 billion on this accounting line.
The $17.4 billion shock comes from the annual comparison. In Q2 2025, IBIT and ETHA had recorded a combined increase of $13.9 billion thanks to share creations. One year later, their balance becomes negative $3.5 billion. The gap between these two periods thus reaches $17.4 billion.
Your 1st cryptos with BinanceThis link uses an affiliate program.Regulatory documents show 106,148 BTC in a category dedicated to assets used during share redemptions. This impressive volume can give the image of a massive Bitcoin sale. However, the technical reality requires more caution.
Since 2025, authorized participants can perform certain creations and redemptions in kind. They can therefore receive bitcoins directly when IBIT shares are canceled. Not all 106,148 BTC concerned have necessarily been sold for dollars on a platform. Part of it may have been transferred directly to intermediaries.
Fund notes notably mention $3.85 billion in in-kind distributions for Bitcoin. They do not provide the exact breakdown between BTC transferred directly and those actually sold. They also do not identify the investors behind the redemptions.
This distinction prevents an exaggerated interpretation. The figure of $17.4 billion does not measure a loss suffered by Bitcoin holders. It also does not prove that BlackRock has liquidated this amount on the market. It reflects the shift from strong share creation to a period dominated by redemptions.
The movement nevertheless confirms a change in institutional behavior. Several major players have already reduced their positions in crypto funds, as illustrated by the massive retreat of institutional exposures to Bitcoin and Ethereum. The market no longer benefits from the almost automatic accumulation observed after the launch of spot ETFs.
The first sessions of August offer a beginning of stabilization. Between August 3 and 5, IBIT attracted $478.5 million. ETHA received $83.8 million. These $562.3 million however represent only 15.9% of the net contraction of $3.5 billion recorded in the second quarter.
At this rate, nearly 19 sessions would be necessary to compensate an equivalent amount. Still, entries would have to remain constant. A handful of positive days is therefore not enough to confirm the end of redemptions.
The true indicator will be the duration. Regular flows over several weeks would show that institutional demand is returning. An alternation of inflows and outflows would rather signal a cautious market, in which investors use Bitcoin ETFs to quickly adjust their exposure.
SEC documents ultimately reveal less a Bitcoin collapse than a change of cycle for BlackRock products. The massive creations of 2025 have given way to arbitrage and redemptions. The recent recovery, when American ETFs attracted capital despite Bitcoin’s decline, will have to continue to erase this accounting shock of $17.4 billion.
