BlackRock’s Spot Bitcoin ETF Smashes Daily‑Volume Record Amid Sharp BTC Slide
The iShares Bitcoin Trust (IBIT) logged a record‑high $10 billion in trading activity on Thursday, even as the fund’s price fell 13 % – its second‑largest single‑day decline since launch.
What happened
- Unprecedented turnover: Bloomberg ETF analyst Eric Balchunas reported that IBIT’s daily trading volume surged to $10 billion, eclipsing all previous records for the fund. The spike came as investors rushed to buy and sell amid a rapid pull‑back in Bitcoin’s price.
- Price turbulence: The same session saw IBIT’s share price tumble 13 %, making it the fund’s second‑worst one‑day performance. The only larger drop was a 15 % plunge on May 8, 2024.
- Net outflows: The day before, the ETF recorded net withdrawals of roughly $373 million, bringing its cumulative net inflows for 2026 to just ten trading days. The outflow trend reflects the broader retreat of capital from crypto assets after the market correction that began in early October.
Bitcoin context
- Crypto price slide: Bitcoin (BTC) lost about 12 % in the preceding 24 hours, settling near $64,000 after briefly dipping to $60,300. Since its peak of roughly $126,000 in early October, the flagship cryptocurrency has shed about half its value.
- Fund valuation: IBIT’s price mirrored Bitcoin’s trajectory, peaking near $70 in October before declining about 48 % to close Thursday’s session around $36.10 per share.
Market drivers
- Macroeconomic backdrop: Weak U.S. employment data and growing concerns about the capital intensity of the artificial‑intelligence sector have added pressure to risk‑on assets, including crypto.
- Investor sentiment: Commentators such as veteran trader Peter Brandt warn that Bitcoin is exhibiting “campaign‑selling” characteristics, with limited buying interest to cushion the downturn.
Industry perspective
Bob Elliott, the investment chief at Unlimited Funds, noted that the average dollar invested in the BlackRock ETF is now underwater, underscoring the pain investors are experiencing as the market continues to correct.
Key Takeaways
- Record volume does not equal confidence: The $10 billion trading surge reflects heightened activity rather than renewed buying enthusiasm; most of the flow was triggered by rapid price swings.
- IBIT’s performance remains volatile: Even with BlackRock’s brand backing, the ETF is highly sensitive to Bitcoin’s price movements, as demonstrated by its 13 % daily decline.
- Capital is fleeing crypto ETFs: Net outflows in the hundreds of millions signal that the recent inflow surge that followed IBIT’s launch has largely dissipated.
- Broader market pressures persist: Weak labor market data and the ongoing AI funding race are weighing on risk assets, limiting any immediate rebound for Bitcoin and its associated products.
- Investor caution advised: Market participants should anticipate continued volatility and consider the fund’s exposure to Bitcoin’s price trajectory when assessing risk.
As the cryptocurrency market navigates its steep correction, BlackRock’s spot Bitcoin ETF serves as a barometer for institutional sentiment—record trading volume paired with sharp price declines underscores the turbulence that still defines the space.
Source: https://cointelegraph.com/news/blackrock-ibit-daily-volume-record-10-billion-bitcoin-crash?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
