Record $40B Trading Volume Hits Bitcoin ETFs, Led by BlackRock’s IBIT, as Institutions Exit Positions

Bitcoin ETFs Surge to Record $40B Trading Volume, Led by BlackRock’s IBIT, Amid Institutional Sell-Off

Bitcoin ETFs hit an all-time high of $40 billion in trading volume, driven by institutional selling, with BlackRock’s IBIT accounting for $8 billion of Friday’s $11.01 billion total.

Institutional Capitulation
The surge in trading coincides with a sharp decline in bitcoin’s price and large ETF redemptions, signaling institutional capitulation—the rush to exit positions as confidence fades.

Bitcoin has fallen 23% this month to $86,700, dipping as low as $80,000 on some exchanges last week, according to CoinDesk. BlackRock’s IBIT has also dropped to its lowest level since April.

Most ETF holders are now underwater, with the weighted-average entry price above $90,000, according to Bianco Research. Reflecting this, the 11 major bitcoin ETFs have processed record redemptions totaling $3.55 billion this month.

These redemptions challenge the perception of ETFs as long-term holdings, suggesting that fears of an impending macroeconomic shock may be driving institutional capitulation.

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