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, representing nearly 70% of the total, according to data source SoSoValue.
On Friday alone, these funds recorded more than $11.01 billion in trading volume, with BlackRock’s IBIT contributing $8 billion.
Capitulation
The record activity comes on the heels of a drop in the price of bitcoin and large redemptions, pointing to institutional capitulation: investors’ rush to exit fading 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 has also fallen to its lowest level since April.
The falling BTC price has pushed most ETF holders into the ground as the weighted average entry price for holders is above $90,000, according to Bianco Research.
It’s no surprise that the 11 ETFs have cumulatively processed record redemptions worth $3.55 billion this month.
The record redemptions challenge the prevailing belief that these entities take long-term positions, suggesting the possibility that fears of an imminent macroeconomic explosion are driving this capitulation.
