Bitcoin ETFs Reach Record $40B Trading Volume, Led by BlackRock’s IBIT Amid Institutional Sell-Off
Bitcoin ETFs hit a record $40 billion in trading volume, driven by institutional selling. BlackRock’s IBIT accounted for $8 billion of Friday’s $11.01 billion total.
Institutional Capitulation
The surge coincides with a sharp decline in bitcoin’s price and large ETF redemptions, signaling institutional capitulation—investors rushing to exit positions. Bitcoin has fallen 23% this month to $86,700, dipping as low as $80,000 on some exchanges, while IBIT fell to its lowest level since April. Most ETF holders are now underwater, with weighted-average entry prices above $90,000, according to Bianco Research.
This month, the 11 major bitcoin ETFs have processed record redemptions totaling $3.55 billion. The outflows challenge the perception of ETFs as long-term holdings and suggest that fears of a potential macroeconomic shock are driving institutional exits.
