BlackRock's Bitcoin ETF Registers Highest Trading Volume in 3 Months

Key Points

  • BlackRock's spot bitcoin ETF (IBIT) experienced an 11% price decline last week, with trading volumes reaching the highest since mid-November.
  • Over 331 million shares of IBIT were traded as the price fell below January's support level, reaching a low of $46.07.
  • Investors withdrew over $1 billion from the ETF due to the price drop and a decrease in the CME futures basis, leading to panic selling.
  • Despite the outflows, IBIT remains the largest ETF globally with $39.6 billion in assets under management.

Summary

Last week, BlackRock's spot bitcoin ETF, known as IBIT, saw its price decline by over 11%, marking a significant downturn since early November. The trading volume surged to its highest since mid-November, with over 331 million shares changing hands. The ETF's price dipped below the January support level of $50.69, eventually reaching a low of $46.07. This bearish movement was accompanied by investors pulling out more than $1 billion from the fund, driven by panic selling due to the price slide and a decrease in the CME futures basis. Despite these outflows, IBIT continues to be the largest ETF in the world, managing $39.6 billion in assets. The technical outlook for IBIT remains bearish as long as the price stays below the former support level, now acting as resistance.

coindesk
March 5, 2025
Crypto
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