BlackRock was trending heavily on X on Friday, February 28, as Bitcoin‘s (BTC) price plummeted below the $80,000 mark, reaching its lowest level since the start of 2025. As panic spread, speculation arose that BlackRock was offloading its Bitcoin holdings.
One particularly viral claim came from Crypto Beast, a well-known account with over 658,000 followers, suggesting that BlackRock had dumped as much as $500 million worth of BTC on February 27. The claim sparked heated discussions, with many questioning whether the world’s largest asset manager was actively contributing to Bitcoin’s decline.
Deep dive into the IBIT sales
However, a closer look at the data paints a different picture. According to the Arkham analysis, BlackRock’s iShares Bitcoin Trust (IBIT) still holds approximately 577,919 BTC. While the fund did see a net outflow of 2,274 BTC on February 27 and a seven-day outflow of 10,595 BTC, this does not mean BlackRock itself is selling Bitcoin.
Instead, these figures indicate that investors in the ETF are redeeming their shares, which forces the fund to sell BTC to match the redemptions. This is an important distinction—BlackRock, as the fund issuer, is not choosing to sell BTC, but rather adjusting its holdings in response to investor demand.
In reality, BlackRock appears to be increasing its exposure to Bitcoin-related assets rather than selling. A recent Schedule 13G filing revealed that the firm now owns 5% of Strategy (MSTR), equivalent to roughly 11.2 million shares. A 0.91% increase from its previous 4.09% stake as of September 30, 2024.
The data contradicts the notion that BlackRock is intentionally dumping Bitcoin. Instead, the outflows from IBIT and other funds are the result of retail and institutional investors selling their ETF shares, not BlackRock itself liquidating its BTC holdings. Larry Fink is not selling Bitcoin, and there is no evidence to support the claim that BlackRock is exiting its BTC position.
In fact it was revealed BlackRock would add its ETF into its $150 billion model portfolio on February 28.
All in all, panic often fuels speculation during market downturns, this situation highlights the importance of distinguishing between investor-driven ETF redemptions and direct asset sales by BlackRock.
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