The 11 U.S.-listed spot Bitcoin ETFs broke trading records last week, with cumulative volumes exceeding $40.32 billion, indicating likely institutional capitulation.
BlackRock’s IBIT leads the industry with $27.79 billion in trading volume, or nearly 70% of the total, according to data source SoSoValue.
On Friday alone, these funds saw trading volume of more than $11.01 billion, with BlackRock’s IBIT contributing $8 billion.
Capitulation
This record activity is accompanied by a fall in the price of bitcoin and significant buybacks, indicating institutional capitulation – the rush of investors to abandon declining bets.
The price of Bitcoin has fallen 23% this month to $86,700, falling to almost $80,000 on some exchanges last week. BlackRock’s IBIT also fell to its lowest level since April.
BTC’s price decline has pushed most ETF holders underwater, as the weighted average entry price for holders is over $90,000, according to Bianco Research.
It’s no surprise that the 11 ETFs processed record redemptions this month worth a cumulative $3.55 billion.
The record buybacks challenge the prevailing belief that these entities are taking long-term positions, suggesting the possibility that fears of an impending macroeconomic explosion are behind this capitulation.
