Bitcoin ETFs Smash $40B Trading Volume Record, 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. BlackRock’s IBIT accounted for $8 billion of Friday’s $11.01 billion total.
Institutional Capitulation
The surge coincides with sharp bitcoin price declines and large ETF redemptions, signaling institutional capitulation—investors rushing to exit positions.
Bitcoin has dropped 23% this month to $86,700, hitting nearly $80,000 on some exchanges last week, while BlackRock’s 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.
Reflecting this, the 11 major bitcoin ETFs processed record redemptions totaling $3.55 billion this month. These outflows challenge the idea of ETFs as long-term holdings, suggesting fears of a potential macroeconomic shock are driving institutional exits
