Actually, I would think that it depends on the Client in the end.
The VM would get its time from the "emulated" BIOS which is getting its time from the VM Host.
But once the OS is loaded (and has access to the Internet) I am sure that you could set it to point to an internal or external NTP Server. *** Thinking like how Windows usually defaults to something like "time.windows.com"...
Of course since I don't use bhyve/iohyve, it is all a "best guess"... :)