BlackRock’s Bitcoin ETF Trading Surges as Bitcoin Plunges

As the price of Bitcoin (BTC) plunged, trading volume poured into the world’s largest asset manager BlackRock’s spot Bitcoin exchange-traded fund (ETF).

According to Cointelegraph on the 5th (local time), BlackRock’s spot Bitcoin ETF, the iShares Bitcoin Trust (IBIT), posted $10 billion in trading value in a single day, setting a new post-listing high. IBIT’s price, however, fell 13% the same day—its second-largest one-day drop since listing. The biggest decline was a 15% fall recorded on May 8 last year.

IBIT logged net outflows of $373.40 million in a single day the previous day. So far this year, IBIT has seen net inflows on only 10 trading days. It has yet to regain a clear inflow trend since the sharp selloff in the crypto market in early October last year.

Bitcoin fell more than 10% from the prior day to as low as $60,000 before paring losses slightly. It is still down about 50% from the all-time high (about $126,199) set in early October.

IBIT has followed a similar path. After rising to about $70 per share in early October last year, IBIT has continued to slide, ending the day at $36.10, down about 48% from its peak.

Bob Elliott, chief investment officer (CIO) at Unlimited Funds, said, “As of last week’s close, the average dollar invested in IBIT is underwater,” adding that “considerable pressure is being placed on investor sentiment.”

Some are also warning of further downside. Veteran trader Peter Brandt said, “The current Bitcoin chart shows clear signs of a ‘campaign-style selloff,’” adding that “there is little sign of fresh buying interest to support prices.”