Let’s talk about frenetic trading.
On Thursday, BlackRock’s Bitcoin exchange-traded fund, called IBIT, hit an incredible record with more than 284 million shares traded, according to Nasdaq data. That’s a whopping more than $10 billion in face value.
To put it in perspective, that broke the old record of 169.21 million shares from Nov. 21 by a whopping 169%.
The record volume came as IBIT plunged 13% to below $35, the lowest since October 11, 2024, widening the year-to-date loss to 27%. Prices reached a high of $71.82 in early October.
The fund processed redemptions totaling $175.33 million on Thursday, representing 40% of the cumulative net outflow of $434.11 million across 11 funds, according to SoSoValue.
IBIT, the world’s largest exchange-traded bitcoin fund, holds physical coins and is designed to mirror the spot price of the world’s leading cryptocurrency, which has been falling recently, falling to nearly $60,000 on Thursday. The fund has been a preferred alternative investment vehicle for institutions seeking exposure to cryptocurrencies through regulated products.
Capitulation Tips
The combination of record volume and falling prices often indicates 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 signaling the start of a slow and painful process of bottoming out.
IBIT options trading on Thursday told the same story. Longer duration put options. or contracts used to protect against crises, reached a record premium of more than 25 volatility points above call options (bullish bets), according to data from MarketChameleon.
That kind of strong bias often indicates maximum fear as well.
That said, nothing is guaranteed, as bear markets can drag on longer than even dip buyers can remain liquid.
