BlackRock Bitcoin ETF investors face 40% paper losses
- Investors in BlackRock's iShares Bitcoin Trust are now sitting on average paper losses of nearly 40% as Bitcoin (CRYPTO:BTC) continues to decline.
- The fund has seen more than US$1.3 billion in weekly net outflows, including a single-day withdrawal of over US$444 million from IBIT.
- The sustained selling reflects weaker sentiment towards Bitcoin ETFs as higher interest rates and macroeconomic uncertainty weigh on demand.
Investors in BlackRock iShares Bitcoin Trust are now facing average paper losses of almost 40% after Bitcoin (CRYPTO:BTC) fell more than 50% from its October 2025 peak of about US$126,000 to around US$60,750.
IBIT became the largest US spot Bitcoin ETF after launching in January 2024, attracting more than US$60 billion in cumulative inflows before the recent market downturn erased earlier gains.
Analysis by Bespoke Investment Group found that the average investor in IBIT has moved from gains of about 30% in mid-2025 to losses approaching 40% as Bitcoin's price weakened.
IBIT's net assets have fallen to about US$44.4 billion, with the roughly US$16 billion gap from cumulative inflows largely reflecting Bitcoin's declining price rather than investor redemptions alone.
Spot Bitcoin ETFs collectively recorded more than US$1.3 billion in net outflows during the week ending June 26, while IBIT posted a single-day outflow exceeding US$444 million and extended the sector's record streak to seven consecutive weeks of net withdrawals.
The recent selling contrasts with earlier market corrections, when ETF investors generally added to their positions, as a hawkish Federal Reserve and expectations of higher interest rates for longer have reduced demand for risk assets.
The sustained outflows demonstrate how Bitcoin's volatility can quickly reverse investor gains, with established products such as IBIT continuing to reflect broader market sentiment as cryptocurrency prices remain under pressure.
At the time of reporting, Bitcoin price was $59,266.71.
