BlackRock’s Bitcoin, Ethereum ETFs See $3.5B Q2 Outflow

SEC filings for the quarter ended June 30 show BlackRock’s iShares Bitcoin Trust (IBIT) and iShares Ethereum Trust (ETHA) recorded a combined $3.5 billion net decrease on the capital-share line in Q2. The funds posted a $13.9 billion net creation gain in Q2 a year earlier, a year-over-year swing of about $17.4 billion.

The filings show IBIT had $4.3 billion in contributions tied to shares issued and $7.2 billion in distributions tied to shares redeemed, producing a $2.9 billion net decrease. ETHA recorded $943.3 million in contributions and $1.5 billion in distributions, a $583.4 million net decrease.

The documents report trust-level operations reduced IBIT’s net assets by more than $7 billion in the quarter and reduced ETHA’s by about $1.5 billion. Those totals include net realized losses and unrealized depreciation at the trust level, which are separate from the capital-share figures.

Activity tables list 106,148 BTC and 770,839 ETH in rows labeled as assets sold for share redemptions. Footnotes state the filings include in-kind distributions valued at $3.85 billion of Bitcoin and $904 million of Ethereum without disclosing the unit-level breakdown. The filings note the token quantities reported for redemptions are not necessarily equivalent to open-market sales and do not identify who initiated the redemptions.

Data through Aug. 6 show limited inflows in early August. Across Aug. 3-5 IBIT received $478.5 million and ETHA $83.8 million, a combined $562.3 million. A single-day table shows IBIT with $196.8 million of inflows on Aug. 5 and ETHA with $50.3 million that day. The $562.3 million equals about 15.9% of the $3.5 billion quarterly decrease. At the reported combined daily average of roughly $187.4 million, it would take about 19 trading sessions to reach a similar amount.

Capital-share transactions reflect in-kind or cash contributions and distributions tied directly to share issuance and redemption at the trust level. In-kind redemptions allow the trust to deliver underlying cryptocurrency rather than cash when shares are redeemed. Filings disclose values for those in-kind distributions but do not break out exact unit counts per transaction. Trust-level net asset changes can also include realized gains or losses and changes in the market value of held crypto, separate from the creation and redemption figures disclosed on the capital-share line.