BlackRock’s Bitcoin ETF IBIT Hits Record $10B Volume as BTC Crash Triggers Selloff
BlackRock’s spot Bitcoin exchange-traded fund recorded its largest daily trading volume on record as the cryptocurrency’s sharp price drop triggered heavy selling across both spot and ETF markets.
The iShares Bitcoin Trust ETF (IBIT) saw roughly $10 billion worth of shares change hands on Thursday, according to Bloomberg ETF analyst Eric Balchunas. He said the fund “crushed its daily volume record†as traders rushed to reposition amid Bitcoin’s steep decline.
The surge in activity came alongside one of the ETF’s worst daily performances since launch. IBIT fell 13% on the day, marking its second-largest single-day drop.
IBIT share price (Source: Google Finance)
Its worst decline occurred on May 8, 2024, when the fund lost around 15% in a single session.
Outflows Mount as Market Sentiment Weakens
The record volume followed another day of heavy redemptions. On Wednesday, IBIT recorded net outflows of $373.4 million, continuing a pattern of inconsistent inflows that has persisted since a broader crypto market crash in early October.
So far in 2026, the fund has seen net inflows on only ten trading days, underscoring weakening investor confidence as Bitcoin’s price continues to slide.
Bitcoin dropped roughly 9% over the past 24 hours to trade near $64,000, after briefly falling to a low of about $60,300.
BTC price (Source: CoinGecko)
The decline represents a drawdown of roughly 50% from its all-time high near $126,000 reached in early October, according to CoinGecko data.
IBIT has mirrored Bitcoin’s trajectory. The ETF peaked near $70 per share in early October but has since lost around 48% of its value, closing Thursday at $36.10.
Average Investor Now Underwater
The magnitude of the selloff has left many ETF investors in the red. Bob Elliott, chief investment officer at asset manager Unlimited Funds, said the average dollar invested in IBIT is now underwater as of the market close last Friday.
That shift shows how quickly sentiment has reversed.
Spot Bitcoin ETFs were among the most successful launches in recent financial history, attracting tens of billions of dollars in assets during their first year. However, the latest downturn has tested the conviction of both institutional and retail investors who entered the market near the top.
Macro Pressures Add to Crypto Selloff
The latest leg down in Bitcoin’s price has coincided with broader macroeconomic concerns. Weak U.S. job market data and growing unease about the scale of capital flowing into artificial intelligence infrastructure have weighed on risk assets more broadly.
Cryptocurrencies, which are often treated as high-beta risk trades, have been particularly sensitive to these shifts in sentiment. The rapid drawdown has also triggered liquidations and forced selling across derivatives markets, amplifying volatility.
Some analysts believe the selloff may not be over. Veteran trader Peter Brandt said the market is showing “fingerprints of campaign selling,†suggesting that large holders could be systematically unloading positions with limited buying support to absorb the pressure.
Record Volume Reflects Stress in ETF Market
The $10 billion surge in IBIT trading volume shows the ETF’s growing importance as a liquidity hub for Bitcoin exposure. When volatility spikes, ETFs often become the first point of entry or exit for institutional investors seeking fast execution.
However, the spike also highlights how quickly sentiment can shift. High trading volumes during price declines are typically associated with panic selling or forced liquidations, rather than fresh inflows.
With Bitcoin now trading far below its recent highs and ETF investors facing mounting losses, market participants are closely watching whether the current wave of outflows will stabilize or evolve into a deeper capitulation phase.
For now, IBIT’s record trading day appears to reflect a market under stress, as investors rapidly adjust positions in response to one of Bitcoin’s sharpest drawdowns of the current cycle.
