BlackRock's spot Bitcoin ETF (ticker IBIT) set a new trading record on Thursday, with Nasdaq data showing over 284 million shares changing hands — a notional value exceeding $10 billion. That volume smashed the previous record of 169.21 million shares set on Nov. 21 by 169%.
Volume spike meets 13% price plunge
Despite the record turnover, IBIT's price crashed 13% to below $35, its lowest level since Oct. 11, 2024. Year-to-date losses widened to 27%. The fund had peaked at $71.82 in early October last year.
According to SoSoValue, IBIT saw redemptions of $175.33 million on Thursday, accounting for 40% of the cumulative net outflow of $434.11 million across 11 similar funds. As the world's largest publicly listed bitcoin vehicle, IBIT holds physical coins and tracks the spot price of the top cryptocurrency, which briefly dipped near $60,000 on Thursday. The ETF has been a preferred regulated gateway for institutional investors seeking crypto exposure.
Options market flashes extreme fear: put premium hits record
IBIT options told the same story on Thursday. Data from MarketChameleon shows that longer-dated put options — used to hedge against downside — commanded a record premium of over 25 volatility points relative to calls. Such a heavy put bias typically signals peak fear in the market.
The combination of record volume and a sharp price drop often points to capitulation: long-term holders throwing in the towel and liquidating at a loss. This marks the peak selling phase of a bear market, potentially setting the stage for a slow, painful bottoming process. However, bear markets can drag on longer than even dip buyers can stay liquid — no guarantees.