Bitcoin ETFs Hit Record Trading Session Amid Bear Market

US spot Bitcoin exchange-traded funds just posted their busiest trading session ever, even as the recent slide in the cryptocurrency’s price has left the average ETF investor holding losses.

The surge in activity marks a new phase in the market’s adjustment to this month’s selloff in the sector.

Sponsored

Sponsored

BlackRock’s IBIT on Top as $238 Million Inflows Return Amid Market Stress

On November 21, Bloomberg Senior ETF Analyst Eric Balchunas reported that the 12 spot Bitcoin ETFs recorded $11.5 billion in combined trading volume.

Balchunas described the spike in volume as “wild but normal,” noting that ETFs and other asset classes tend to record elevated turnover during periods of market stress.

He said such bursts of activity often signal the release of liquidity as investors reshuffle positions.

The elevated turnover reflected brisk two-way participation, with some investors cutting exposure while others took advantage of lower prices to add to positions.

BlackRock’s IBIT led the surge, generating $8 billion in turnover and accounting for more than 69% of all spot Bitcoin ETF trading that day. This was IBIT’s highest-volume session since launch, though the fund still ended the day with $122 million in outflows.

Sponsored

Sponsored

“Also, no surprise record week for Put volume in IBIT.. this is one thing that may help people stay the course, they can always buy some puts as a hedge while they stay long,” Balchunas added.

Meanwhile, other Bitcoin ETFs, led by Fidelity’s FBTC, posted net inflows of more than $238 million.

Despite this inflow, the 12 Bitcoin investment vehicles are on course for their worst trading month, with net outflows of more than $3.5 billion.

This substantial outflow and record session come as the average spot Bitcoin ETF holder has slipped into the red.

Data from Bianco Research shows the weighted average purchase price for spot Bitcoin ETF inflows stood at $91,725 as of November 20.