BlackRock Faces $500M Fraud Fallout as Crypto ETFs Bleed $672M in Outflows

BlackRock, the world's largest Bitcoin ETF manager, has been offloading significant amounts of Bitcoin and Ethereum as prices declined, with recent sales totaling approximately $384 million in Bitcoin and $122 million in Ethereum. These sales coincide with substantial outflows across other major crypto ETFs, totaling nearly $1 billion in two days, reflecting a broader market retreat amid growing macroeconomic uncertainty. The selloff has sparked debate among crypto traders and analysts, with some viewing it as a potential market correction or buy-the-dip opportunity, while others fear a chain of liquidations. Concurrently, BlackRock faces a $500 million telecom-financing fraud scandal tied to its private-credit arm, HPS Investment Partners, which has heightened investor anxiety and scrutiny over its risk management. Despite the heavy ETF outflows, Bitcoin's price has shown some resilience, edging above $110,000, while the market prepares for potential volatility due to leveraged trader positions. This combination of market dynamics and corporate challenges underscores the complex environment facing institutional crypto investors and BlackRock's broader financial operations.