BlackRock’s ETFs linked to Bitcoin and Ethereum saw a sharp reversal in the second quarter of 2026. Their activity in the shares goes from a net increase of $13.9 billion a year earlier to a decline of $3.5 billion. An annual gap of 17.4 billion which above all reveals the extent of buybacks.
In brief
- IBIT and ETHA show a combined net decline of $3.5 billion.
- The gap with the 2025 increase reaches 17.4 billion.
- The 106,148 BTC reported do not necessarily correspond to direct sales.
IBIT bitcoin ETF sees 2.9 billion net outflows
BlackRock’s iShares Bitcoin Trust accounts for most of the turnaround. This development continues a sequence during which BlackRock had already sold more than a billion dollars worth of Bitcoin via IBIT, under the effect of reimbursement requests presented by investors. Between April and June 2026, IBIT recorded $4.3 billion in contributions related to the issuance of new shares.
At the same time, distributions associated with repurchased shares reached 7.2 billion. The balance therefore stands at –$2.9 billion. The Ethereum ETHA fund also shows a decline. Its share creations represented 943.3 million dollars, compared to approximately 1.5 billion distributed during redemptions. Its net contraction thus reached 583.4 million. Together, BlackRock’s two crypto ETFs lose 3.5 billion on this accounting line.
The shock of 17.4 billion comes from the annual comparison. In the second quarter of 2025, IBIT and ETHA recorded a combined increase of 13.9 billion thanks to share creations. A year later, their balance becomes negative by 3.5 billion. The difference between these two periods therefore reaches 17.4 billion.
Not all 106,148 bitcoins represent sales on the stock market
Regulatory documents show 106,148 BTC in a category dedicated to assets used during share redemptions. This impressive volume may give the image of a massive sale of bitcoins. However, technical reality requires more caution.
Since 2025, authorized participants can carry out certain creations and certain redemptions in kind. They can therefore directly receive bitcoins when IBIT shares are canceled. All the 106,148 BTC concerned were therefore not necessarily sold for dollars on a platform. A part was able to be transferred directly to intermediaries.
The fund ratings mention in particular $3.85 billion in distributions in kind for Bitcoin. However, they do not give the exact distribution between the BTC transferred directly and those actually sold. They also do not make it possible to identify the investors behind the redemptions.
This distinction avoids an exaggerated reading. The figure of 17.4 billion does not measure a loss suffered by bitcoin holders. It also does not prove that BlackRock liquidated this amount on the market. It reflects the transition from strong share creation to a period dominated by redemptions.
The movement nevertheless confirms a change in institutional behavior. Several large players have already reduced their positions in crypto funds, as illustrated by the massive decline in institutional exposures to Bitcoin and Ethereum. The market no longer benefits from the almost automatic accumulation observed after the launch of spot ETFs.
Bitcoin must now confirm the return of buyers
The first sessions in August offer the beginnings 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, almost 19 sessions would be necessary to compensate an equivalent amount. The entries would still have to remain constant. A handful of positive days is therefore not enough to confirm the end of buybacks.
The real indicator will be duration. Regular flows for several weeks would show that institutional demand is returning. Rather, alternating entries and exits would signal a cautious market, in which investors use Bitcoin ETFs to quickly adjust their exposure.
The SEC documents ultimately reveal less of a collapse in Bitcoin than a change in cycle for BlackRock’s products. The massive creations of 2025 have given way to arbitration and reimbursements. The recovery observed recently, when American ETFs attracted capital despite the fall in Bitcoin, will have to continue to erase this accounting shock of 17.4 billion.
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