Bitcoin ETFs Hit $40B Trading Record as BlackRock’s IBIT Leads Institutional Sell-Off
Bitcoin ETFs reached an all-time trading volume of $40 billion, fueled by institutional selling, with BlackRock’s IBIT alone contributing $8 billion of Friday’s $11.01 billion total.
Institutional Capitulation
The surge comes amid sharp bitcoin price declines and massive ETF redemptions, signaling institutional capitulation. Bitcoin has fallen 23% this month to $86,700, dipping nearly to $80,000 on some exchanges, while IBIT hit its lowest level since April. Most ETF holders are now underwater, with weighted-average entry prices above $90,000, according to Bianco Research.
In total, 11 major bitcoin ETFs processed record redemptions of $3.55 billion this month. These outflows challenge the notion of ETFs as long-term investments, suggesting fears of an impending macroeconomic shock are driving institutional exits.
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