Institutions Take Profits: Bitcoin ETF Outflows Surge to $326 Million Despite BTC Price Recovery

Even though Bitcoin rebounded sharply to $115,000 after Friday’s crypto market crash, investors appear to have used the rally as an opportunity to lock in profits. Spot Bitcoin ETFs recorded massive outflows worth $326 million — the largest since the October market dip. Meanwhile, BlackRock CEO Larry Fink is urging retail investors to be cautious with Bitcoin, adding to the market’s cautious sentiment.

Biggest Outflow Since October Crash On October 13, U.S. spot Bitcoin ETFs saw a steep $326 million in net outflows, marking the largest withdrawal since the crypto market crash on October 10. The only exception was BlackRock’s iShares Bitcoin Trust (IBIT), which managed to record a net inflow. According to Farside Investors, IBIT attracted 522 BTC, valued at $60.3 million, with a daily trading volume of $4.7 billion — showing that institutional interest in Bitcoin remains strong despite short-term selling pressure. October initially started on a positive note for Bitcoin ETFs, with over $5 billion in net inflows during the first week. However, the sentiment shifted after Donald Trump announced 100% tariffs on China, sparking market volatility and diverting capital away from crypto.

BTC Price Gains Trigger Profit-Taking As Bitcoin tests the $120,000 resistance, many investors are opting to take profits. At the moment, BTC has fallen 1.6% to $112,636, while daily trading volume has dropped by 23% to $71.47 billion. Adding to the cautious mood, the well-known whale Trump Insider reportedly increased its short position on BTC, fueling skepticism among traders. Crypto analyst Altcoin Sherpa noted that if the current selling pressure continues, Bitcoin could find strong support around $110,000 before deciding its next move.

Meanwhile, on-chain data shows traders are also shorting XRP, DOGE, and PEPE, pointing to a broader correction across the crypto market.

Larry Fink: Bitcoin Has a Role, But Don’t Go All In BlackRock CEO Larry Fink remains cautiously optimistic about cryptocurrencies. In an interview with CBS, he recalled his 2017 comments when he called Bitcoin “an index of money laundering,” but this time he took a more nuanced stance:

“Markets teach you that you always need to re-evaluate your assumptions. Cryptocurrencies have a role, similar to gold — they’re an alternative asset,” Fink said. However, he also warned small investors to stay disciplined:

“For those looking to diversify, it’s a good asset — but it shouldn’t be a large part of their portfolio,” he added. BlackRock’s IBIT ETF continues to outperform the competition, having grown its assets under management to $94 billion since its launch in January 2024, making it the most successful Bitcoin ETF globally.

Summary The $326 million outflow from Bitcoin ETFs suggests that institutions are taking profits amid BTC’s price rally, while parts of the market brace for a short-term correction. Still, long-term interest in Bitcoin remains strong — largely driven by funds like BlackRock’s IBIT. As Larry Fink acknowledges, Bitcoin is no longer a fringe asset but rather a legitimate alternative in the global investment landscape.

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