BlackRock’s IBIT Sets New Trading Record In $11.5B ETF Volume Surge

BlackRock’s IBIT set a new trading record as Bitcoin ETF activity exploded across the market. U.S. Bitcoin spot ETFs hit $11.5 billion in combined volume, the highest ever recorded since the products launched.

Bitcoin ETF Demand Rises As IBIT Dominates Market Activity

According to Eric Balchunas of Bloomberg, IBIT alone generated $8 billion in trading activity. This made it the most heavily traded fund in the group and highlighted its dominance among institutional investors.

The data shows that trust in Bitcoin ETFs is rising, and investors are moving forward with repositioning their assets. Balchunas described the volume of IBIT trading, which was the highest volume ever on a single day, as an eruption that cut across the entire category. This increase is in line with the overall strategy of BlackRock, which lately involved transferring a portion of its Bitcoin and Ethereum assets to Coinbase.

There was also a lot of inflow into a number of funds at the last trading session. Total inflows reached about $240 million, led by Fidelity’s FBTC with $108 million and consistent support for Grayscale’s products, per SoSoValue data. This implies a huge shift in investor sentiment after the BlackRock Bitcoin ETF recorded its biggest single day outflow recently.

Bitwise ETFs also experienced a great demand. Bitwise CEO Hunter Horsley confirmed that there was more than $40 million in inflows across three of the firm’s ETFs in a single day.

IBIT Options Surge Shows Growing Hedging Demand

He said ETF investors were clearly buying right now because many now see assets as cheap relative to recent prices. Previous disclosures also showed that JPMorgan has a large share in BlackRock’s Bitcoin ETF, which highlights further institutional involvement.

Horsley also noted that most investors buy when the assets seem like they are underestimated in value as opposed to buying on a proven bottom. His statements indicate that long-term investors are buying the dips to accumulate more positions.

The day also marked a new milestone in options activity linked to IBIT. Balchunas also pointed to an all-time high in put volume for this BlackRock ETF this week. According to him, a large number of investors use puts as a cushion to hold long positions and protects them against a downside risk.

This increase in the volume of puts proves that investors are trading ETFs and building organized risk management around it at the same time. Such a trend contributes to liquidity and improves the position of the product in the broader market.