Talk about crazy trading.
On Thursday, BlackRock’s spot Bitcoin exchange-traded fund, ticked as IBIT, hit a wild record with over 284 million shares traded, as of Nasdaq data. That’s a whopping $10 billion plus in face value.
To put that into perspective, it smashed the old record of 169.21 million shares from November 21st by a whopping 169%.
The record volume came as IBIT plunged 13% to below $35, the lowest since Oct. 11, 2024, extending the year-to-date loss to 27%. Prices peaked with a high of $71.82 in early October.
The fund processed $175.33 million worth of redemptions on Thursday, accounting for 40% of the cumulative net outflow of $434.11 million across 11 funds per day. SoSoValue.
IBIT, the world’s largest exchange-traded bitcoin fund, holds actual coins and is designed to mirror the spot price of the world’s top cryptocurrency, which has coalesced recently, plunging to nearly $60,000 on Thursday. The fund has been a preferred alternative investment vehicle for institutions seeking exposure to cryptocurrency through regulated products.
Capitulation hints
The combination of record volume and price crash often signals capitulation – long-term holders throw in the towel and liquidate their holdings at a loss.
It marks the peak selling phase of the bear market, potentially starting a slow, painful bottoming process.
Trading in IBIT options on Thursday told the same story. Longer duration put options. or contracts used to hedge downturns, hit a record premium of more than 25 volatility points over call options (bullish bets), according to data source MarketChameleon.
This kind of heavy put bias often also signals peak fear.
That said, nothing is guaranteed, as bear markets can drag on longer than even dip buyers can stay liquid.
