Amidst a significant downturn in the cryptocurrency market, BlackRock's iShares Bitcoin Trust (IBIT) has registered a record-breaking daily trading volume of $10 billion. This surge in activity occurred as Bitcoin experienced a sharp decline, highlighting the intense market volatility and the increasing role of institutional investors in the digital asset space.
The recent price correction in Bitcoin, with a 12% drop in the last 24 hours, has triggered considerable activity in Bitcoin ETFs. BlackRock's IBIT, along with other Bitcoin ETFs, including Fidelity's FBTC, Bitwise's BITB, and Ark 21Shares ARKB, witnessed their highest trading volumes to date. This spike suggests investors are actively managing their positions, potentially both buying the dip and cutting losses, contributing to the overall trading frenzy.
IBIT's performance is particularly noteworthy. In just seven weeks since its launch, the fund has amassed over $10 billion in assets under management (AUM), surpassing the previous record held by SPDR Gold Shares (GLD), which took over two years to reach the same milestone. By early February 2026, IBIT's total AUM stood at $13.6 billion, with holdings of 197,943 BTC. Approximately 75% of IBIT's growth is attributable to fresh capital inflows rather than price appreciation, signaling sustained demand for regulated exposure to Bitcoin.
However, the broader context reveals some caution. Since the beginning of 2026, there has been a net reduction of $10.3 billion in crypto holdings. While price declines account for some of this reduction, the magnitude is significant. Market analysts are closely watching BlackRock's Bitcoin ETF flows for signals about institutional sentiment.
The rapid adoption of IBIT underscores a significant shift in the investment landscape, with Bitcoin increasingly viewed as a core component of institutional portfolios. This increasing acceptance is also evident in the record daily trading volumes of Bitcoin ETFs.
Despite the enthusiasm, the inherent volatility of Bitcoin remains a key risk factor. Bitcoin's 44% price crash since October has resulted in a 38% drawdown for ETFs, underscoring the potential for amplified losses during market downturns. The $70,000 support level for Bitcoin is being closely monitored, as breaches could trigger further liquidations and exacerbate downward pressure.
The performance of Bitcoin ETFs is essential for the cryptocurrency market. On January 30, 2026, Bitcoin spot ETFs experienced net outflows of $509.70 million, marking the fourth day of redemptions in five trading sessions. This outflow, led by BlackRock's IBIT, contributed to a drop in total BTC ETF assets to $106.9 billion. Simultaneously, Ethereum ETFs also faced challenges, with net outflows of $252.9 million.