Bitcoin ETFs Bleed $490 Million as BlackRock Faces Fraud Scandal
Bitcoin and Ethereum ETFs saw $672 million in combined outflows, led by BlackRock's IBIT losing $291 million, amid a BlackRock fraud scandal.Summary
On Thursday, October 30, major crypto ETFs experienced significant outflows totaling $672 million, with Bitcoin ETFs bleeding $490 million. BlackRock's IBIT led the redemptions with $291 million withdrawn, and its ETHA ETF lost $118 million. These institutional withdrawals suggest risk aversion due to growing macroeconomic uncertainty, though analysts view it as profit-taking rather than panic. This activity coincides with BlackRock facing scrutiny over a $500 million telecom-financing fraud within its recently acquired private-credit arm, HPS Investment Partners. The fraud involved forged contracts used as collateral for loans, raising serious questions about BlackRock's due diligence shortly after acquiring HPS for $12 billion. Despite the turbulence, BlackRock's IBIT remains the dominant ETF, attracting massive net inflows since the start of 2025. The market faces potential volatility as institutional exits clash with leveraged positions, with over $3 billion in Bitcoin short positions vulnerable to liquidation if the price rises slightly toward $112,600.
(Source：BeInCrypto)