Talk about frenzied trading.
BlackRock’s Bitcoin exchange-traded fund, called IBIT, hit a wild record on Thursday with more than 284 million shares traded, according to Nasdaq data. This represents over $10 billion in notional value.
To put things in perspective, this beat the old record of 169.21 million shares from November 21 by 169%.
The record volume came as IBIT plunged 13% to below $35, the lowest since October 11, 2024, extending the year-to-date loss to 27%. Prices peaked at $71.82 in early October.
The fund processed redemptions totaling $175.33 million on Thursday, representing 40% of the cumulative net outflows of $434.11 million across 11 funds, according to SoSoValue.
IBIT, the world’s largest publicly traded Bitcoin fund, holds physical coins and is designed to mirror the spot price of the world’s top cryptocurrency, which has declined recently, crashing to nearly $60,000 on Thursday. The fund is a preferred alternative investment vehicle for institutions seeking exposure to cryptocurrencies through regulated products.
Surrender Tips
The combination of record volume and falling prices often signals capitulation – with long-term holders throwing in the towel and liquidating their holdings at a loss.
This is the peak selling phase of the bear market, potentially signaling the start of a slow and painful bottoming process.
IBIT options trading Thursday told the same story. Longer duration put options. or contracts used to protect against downturns, have reached a record premium of more than 25 volatility points over call options (bullish bets), according to MarketChameleon data.
This kind of heavy sales bias often signals peak fear as well.
That said, nothing is guaranteed, as bear markets can last longer than even dip buyers can remain liquid.
