The 11 U.S.-listed spot Bitcoin ETFs shattered trading records last week, with cumulative volume exceeding $40.32 billion, indicating that institutional investors are likely to capitulate.
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 posted trading volumes of more than $11.01 billion, with BlackRock’s IBIT contributing $8 billion.
Surrender
This record-setting activity coincides with a sharp drop in Bitcoin prices and large redemptions, signaling a capitulation by institutions as investors bid away from their fading bets.
Bitcoin’s price has fallen 23% this month to $86,700, and last week it fell to nearly $80,000 on some exchanges. BlackRock’s IBIT also fell to its lowest level since April.
According to Bianco Research, the weighted average entry price for holders is over $90,000, and the falling price of BTC has put most ETF holders in a bind.
It’s no surprise that 11 ETFs collectively processed record redemptions worth $3.55 billion this month.
This record redemption value casts doubt on the prevailing view that these companies will take a long-term position, and suggests that concerns about an impending macroeconomic explosion may be driving this capitulation.
