Bitcoin ETFs Surge to $40B in Trading, Driven by BlackRock’s IBIT Amid Institutional Capitulation

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, with BlackRock’s IBIT contributing $8 billion of Friday’s $11.01 billion total.

Signs of Capitulation
The surge in activity comes alongside a sharp decline in bitcoin’s price and significant ETF redemptions, highlighting institutional capitulation—the rush by investors to exit positions as confidence wanes.

Bitcoin has dropped 23% this month to $86,700, dipping as low as $80,000 on some exchanges last week, according to CoinDesk. BlackRock’s IBIT also fell 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. This month, the 11 major bitcoin ETFs have processed record redemptions totaling $3.55 billion.

These outflows challenge the perception of ETFs as long-term investments and suggest that concerns about a potential macroeconomic shock are driving institutional exits.