BlackRock's Bitcoin ETF reaches record trading volume of $10 billion

Source : Bloomberg terminal

$10 billion traded as Bitcoin plummeted.

BlackRock's iShares Bitcoin Trust (IBIT) — the world's largest spot Bitcoin ETF — recorded an incredible single-day trading volume of $10.1 billion , according to Bloomberg and ETF.com data . This marks the highest daily trading volume ever for any cryptocurrency ETF (surpassing the previous record of around $8.2 billion, set by IBIT itself by the end of 2025) and occurred on the same day Bitcoin fell by approximately 7-9% to lows of $87,800-$88,500 before partially recovering.

The massive trading volume during the price drop demonstrates a classic " buy low " pattern among institutions: large authorized participants (APs) and market makers aggressively created new shares to meet buyback demand and arbitrage opportunities, while long-term holders and institutions accumulated as prices declined.

ETFs are the new center of gravity

Strong ETF trading during bear market periods typically reflects the two-way activity of institutions—profit-taking by some investors and opportunistic buying by others. Unlike previous cryptocurrency cycles dominated by offshore exchanges and leverage, the ETF channel allows pension funds, asset managers (RIAs) , hedge funds, and corporations to quickly adjust their exposure levels within familiar market infrastructure.

The $10 billion figure reinforces the idea that spot Bitcoin ETFs have become a major liquidity channel for exposure to BTC . For many institutions, ETFs are now preferred over direct custody due to their operational simplicity, compliance clarity, and how they are handled on the balance sheet.

Significance for price determination

As ETFs grow, their trading behavior increasingly influences spot prices through arbitrage. Authorized participants create and redeem shares based on underlying demand, linking ETF activity directly to the BTC spot market. When ETF trading volume spikes, it accelerates the feedback loop between traditional markets and cryptocurrency prices.

The surge in trading volume indicates that institutions are not simply following the trend; they are actively managing risk during dips. Some funds automatically rebalance, others add when prices fall, and some reduce risk. The key difference from previous cycles is that these decisions are now taking place on a large scale, in the public market, during US trading hours.

Our review

A single day of trading worth $10.1 billion by BlackRock's IBIT fund while Bitcoin fell 7-9% is not a sign of surrender — but a sign of confidence. Institutions and large investors took advantage of the dip to buy in, creating new shares and absorbing selling pressure from leveraged traders.

This is typical behavior in a maturing asset class: corrections become buying opportunities for those with a long-term perspective and low capital costs. The fact that ETF inflows remain positive amidst a sharp market downturn is one of the clearest indicators that Bitcoin is transitioning from a speculative asset to an institutional reserve asset.

Disclaimer: The information presented in this article is the author's personal opinion in the field of cryptocurrency. This is not financial or investment advice. All investment decisions should be based on careful consideration of your personal portfolio and risk tolerance. The views expressed in this article do not represent the official stance of the platform. We recommend that readers conduct their own research and consult with experts before making any investment decisions.

Compiled and analyzed by HCCVenture

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