BlackRock’s IBIT posts $10B trading day as heavy redemptions and put demand signal peak selling
BlackRock’s spot bitcoin ETF (IBIT) recorded a record single-day volume—about 284 million shares traded, representing over $10 billion in notional—while its price plunged roughly 13% to near $35, the lowest since October 2024. The episode coincided with significant net outflows: IBIT processed roughly $175.3 million in redemptions that day, about 40% of the $434.1 million cumulative net outflows across 11 spot BTC funds. Options activity showed a pronounced tilt toward longer-dated put contracts, with put premiums trading more than 25 volatility points above calls, signaling heavy hedging and elevated investor fear. IBIT’s share-price move tracked Bitcoin closely: BTC fell about 12% intraday to roughly $64,000 (dipping to near $60,300) and has lost roughly 50% from its October peak. Traders and analysts cited weak US jobs data and strong flows into AI equities as near-term selling catalysts. Market veterans warned of continued liquidation pressure and weak bid demand. For traders, the combination of record ETF volume, large redemptions and dominant put bias indicates intense institutional selling and elevated short-term volatility; IBIT flows remain a useful real-time gauge of institutional reaction to price shocks and may foreshadow either an extended capitulation phase or the start of a slow bottoming process depending on liquidity and sentiment evolution.
Bearish
The news points to heightened selling pressure on Bitcoin driven by institutional activity through BlackRock’s IBIT: record ETF volume, large same-day redemptions and a strong bias in options toward long-dated puts all indicate significant hedging and capitulation. IBIT’s price mirrored BTC’s steep intraday decline, reinforcing high correlation between the fund and spot bitcoin. In the short term, expect elevated volatility and downside pressure as liquidity is consumed and weak bids may allow further markdowns. The dominant put demand and net outflows increase the likelihood of continued selling or stop-run dynamics before relief appears. Over the medium-to-long term, this episode could mark an intense capitulation that precedes a slow bottoming if liquidity stabilizes and sellers are exhausted; however, absent a clear liquidity inflection or supportive macro data, downside risk remains. For traders, the immediate implication is to expect higher volatility, use tighter risk controls, monitor ETF flows and option skew for real-time signals, and avoid assuming an immediate bullish reversal until sustained inflows or improved liquidity emerge.