The 11 US-listed spot bitcoin ETFs broke trading records last week, with cumulative volumes exceeding $40.32 billion, indicating likely institutional capitulation.
BlackRock’s IBIT led the industry with $27.79 billion in trading volume, accounting for nearly 70% of the total, according to data source SoSoValue.
On Friday alone, these funds recorded over $11.01 billion in trading volume, with BlackRock’s IBIT contributing $8 billion.
Surrender
The record-setting activity comes hand-in-hand with a plunge in bitcoin’s price and large redemptions, pointing to institutional capitulation – investors’ rush to exit fading bets.
Bitcoin’s price has fallen 23% this month to $86,700, falling to nearly $80,000 on some exchanges last week. BlackRock’s IBIT has also fallen to its lowest level since April.
BTC’s price drop has pushed most ETF holders underwater, as the weighted average entry price for holders is over $90K, according to Bianco Research.
It’s no surprise that the 11 ETFs cumulatively processed record redemptions worth $3.55 billion this month.
The record redemptions challenge the prevailing belief that these entities are taking long-term positions, suggesting a possibility that fears of an impending macroeconomic implosion are driving this capitulation.
