Bitcoin ETFs Hit Record $11.5 Billion Volume as Most Investors Slip Into Losses
US spot Bitcoin exchange-traded funds simply posted their busiest buying and selling session ever, even as the latest slide within the cryptocurrency’s value has left the common ETF investor holding losses.
The surge in exercise marks a brand new section available in the market’s adjustment to this month’s selloff within the sector.
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 mixed buying and selling quantity.
Balchunas described the spike in quantity as “wild however regular,” noting that ETFs and different asset courses are likely to report elevated turnover in periods of market stress.
He stated such bursts of exercise usually sign the discharge of liquidity as traders reshuffle positions.
The elevated turnover mirrored brisk two-way participation, with some traders slicing publicity whereas others took benefit of decrease costs so as to add to positions.
BlackRock’s IBIT led the surge, producing $8 billion in turnover and accounting for greater than 69% of all spot Bitcoin ETF buying and selling that day. This was IBIT’s highest-volume session since launch, although the fund nonetheless ended the day with $122 million in outflows.
“Also, no shock report week for Put quantity in IBIT.. that is one factor which will assist folks keep the course, they will all the time purchase some places as a hedge whereas they keep lengthy,” Balchunas added.
Meanwhile, different Bitcoin ETFs, led by Fidelity’s FBTC, posted web inflows of greater than $238 million.
Despite this influx, the 12 Bitcoin funding autos are on target for his or her worst buying and selling month, with web outflows of greater than $3.5 billion.
This substantial outflow and report session come as the common spot Bitcoin ETF holder has slipped into the purple.
Data from Bianco Research reveals the weighted common buy value for spot Bitcoin ETF inflows stood at $91,725 as of November 20.
Bitcoin’s drop below that level this week pushed most holders, together with those that entered the market in January 2024, into unrealized losses.
Bitcoin fell roughly 12% this week to as low as $80,000 earlier than recovering to $84,431 as of press time. This price performance extends a month-long slide and reinforces the risk-off sentiment throughout digital property.
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