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BlackRock’s iShares Bitcoin Trust ETF (IBIT) has recorded its highest-ever daily trading volume, even as Bitcoin suffered one of its sharpest selloffs in recent months. The surge in activity highlights how extreme volatility continues to drive trader engagement in spot Bitcoin ETFs, particularly during periods of market stress.
On Thursday, IBIT saw $10 billion worth of shares change hands, setting a new daily volume record as Bitcoin plunged by 12% in just 24 hours. The move underscores how institutional and retail traders alike are using spot Bitcoin ETFs to react quickly to rapid price swings.
IBIT Trading Volume Hits Record
Bloomberg ETF analyst Eric Balchunas described the session as historic, saying IBIT “crushed its daily volume record” as panic and opportunistic trading dominated the market. The surge came as Bitcoin’s price broke lower, triggering heavy activity across crypto-linked investment products.
Despite the record turnover, IBIT’s price performance reflected the broader market downturn. The ETF fell 13% on the day, marking its second-worst single-day decline since launching. Its steepest daily drop remains a 15% plunge recorded on May 8, 2024.
$IBIT just crushed its daily volume record with $10b worth of shares traded as its price fell 13%, second worst daily price drop since it launched. Brutal. pic.twitter.com/HxMDl9fxbW
— Eric Balchunas (@EricBalchunas) February 5, 2026
High trading volume during selloffs often signals capitulation, hedging, or aggressive repositioning, rather than confidence. In IBIT’s case, the data suggests traders were actively responding to price dislocations rather than exiting the asset class entirely.
Bitcoin Price Slides Sharply
Bitcoin’s sharp move lower set the tone for ETF activity. The world’s largest cryptocurrency dropped 12% over the past 24 hours, falling to around $64,000 after briefly touching lows near $60,300.
According to CoinGecko data, Bitcoin is now down roughly 50% from its all-time high of $126,000, reached in early October. The sustained decline has weighed heavily on investor sentiment and sparked renewed debate over whether the current cycle has further downside ahead.
While Bitcoin rebounded modestly from intraday lows, analysts warn that thin liquidity and cautious buyers could leave the market vulnerable to additional volatility in the days ahead.
ETF Outflows Pressure IBIT
The surge in trading volume has not translated into sustained inflows. On Wednesday, IBIT recorded net outflows of $373.4 million, continuing a pattern of inconsistent capital movement throughout 2026.
So far this year, IBIT has logged just 10 trading days of net inflows, reflecting waning risk appetite after the broader crypto market crash in early October. Since then, both Bitcoin and spot ETFs have struggled to regain momentum.
IBIT’s price mirrors Bitcoin’s trajectory. After peaking near $70 in early October, the ETF has fallen nearly 48%, closing at $36.10 on Thursday. The decline has left many investors holding positions below their entry prices.
Investors Face Underwater Positions
Bob Elliott, chief investment officer at Unlimited Funds, highlighted the growing strain on holders, noting that the average dollar invested in IBIT is now underwater. The comment underscores how late-cycle inflows during the October rally have translated into significant unrealized losses.
For long-term investors, the drawdown raises questions about risk management, position sizing, and expectations around Bitcoin’s role as a portfolio diversifier. For short-term traders, however, heightened volatility continues to present opportunities.
Macro Fears Drive Market Volatility
The latest Bitcoin crash has been fueled by broader macroeconomic concerns. Weak US labor market data has revived fears of slowing economic growth, while escalating investment in the artificial intelligence sector has prompted worries about capital concentration and valuation excesses.
Veteran trader Peter Brandt added to the cautious outlook, warning that Bitcoin is showing “fingerprints of campaign selling,” suggesting sustained distribution with limited buying support. If buyers fail to step in decisively, analysts caution that further downside may follow.
What Record Volume Signals
IBIT’s $10 billion trading day illustrates how spot Bitcoin ETFs have become a primary vehicle for expressing market views during periods of stress. While inflows remain weak, the sheer volume suggests that institutional participation in crypto markets is far from disappearing.
As Bitcoin searches for a bottom, IBIT’s flows and trading activity will likely remain a key indicator of sentiment across both traditional finance and digital asset markets.