BlackRock's Spot Bitcoin ETF Posts $10 Billion Daily Volume Record as BTC Records Major Intraday Decline

BlackRock’s iShares Bitcoin Trust ETF (IBIT) has recorded a record daily trading volume of $10 billion on spot Bitcoin exchange-traded funds according to Coinfomania. This comes as Bitcoin (BTC) experiences a major intraday decline. The surge in trading activity reflects heightened market volatility and investor interest in Bitcoin-related products. The volume was driven by both inflows and outflows across the ETF market.

Bitcoin ETFs saw significant outflows on February 4, with U.S. spot Bitcoin ETFs logging $545 million in net redemptions. BlackRock’s IBIT led the outflows with a withdrawal of $373 million. Ethereum (ETH) and XRP spot ETFs also experienced outflows of $79.48 million and $92.9 million, respectively as reported by Coinpedia. Despite this, XRP ETFs recorded modest inflows of $4.83 million. The outflows reflect ongoing pressure on institutional and retail investors.

Bitcoin’s price dropped below $74,508 on February 2, marking its lowest valuation in nine months. The price decline followed a broader sell-off in risk assets, including equities and precious metals. The drop was exacerbated by thin weekend liquidity and heightened geopolitical tensions, particularly involving Iran. Bitcoin’s price performance has been volatile since mid-2025, with a series of monthly declines.

Why Did This Happen?

Bitcoin ETF outflows are partly driven by profit-taking from investors who locked in gains following a recent rally. The ETFs had seen strong inflows earlier in 2026, with cumulative inflows exceeding $30 billion. However, recent outflows indicate a shift in investor sentiment, particularly among institutions. BlackRock and Fidelity ETFs saw the largest withdrawals, reflecting a broader trend of cautious positioning.

Institutional investors are also reacting to macroeconomic factors, including uncertainty around U.S. fiscal policy and potential regulatory changes in the crypto space. Some analysts suggest that the outflows are part of a routine risk-management strategy after periods of strong gains. BlackRock maintains a long-term bullish view on Bitcoin despite short-term outflows, with Larry Fink emphasizing the asset’s role in institutional portfolios.

How Did Markets Respond?

The crypto market responded to the news with mixed reactions. Some traders viewed the outflows as a sign of healthy market correction, while others worried about further downside pressure. The sell-off in Bitcoin ETFs coincided with a drop in Bitcoin’s price and a broader decline in the cryptocurrency market capitalization. According to InvestingNews, the total crypto market value fell to $2.5 trillion from $3.11 trillion in the previous week.

Bitcoin’s price action also affected altcoins like Ethereum and Solana. Ethereum ETFs experienced outflows of $79.48 million, while Solana ETFs saw $6.7 million in redemptions. XRP, however, managed modest inflows, indicating selective investor interest in altcoin exposure. The price of Bitcoin and major altcoins is closely tied to Bitcoin’s performance as the market’s bellwether.

What Are Analysts Watching?

Analysts are closely monitoring Bitcoin ETF flows and price behavior for signs of market direction. Some suggest that the current outflows are temporary and do not reflect a structural shift in institutional crypto adoption. TradingView reports that the cumulative inflows for spot Bitcoin ETFs remain at $54.8 billion, a figure that remains strong despite recent redemptions.

Key levels to watch include Bitcoin’s ability to reclaim the $78,000 level, which could signal easing selling pressure. Analysts also highlight the importance of upcoming U.S. economic data and regulatory developments. Institutions are expected to maintain long-term bullish positions, though short-term volatility may persist.

Bitcoin’s role as a hedge against inflation and economic uncertainty remains a topic of debate. Some experts argue that the recent drop challenges the “digital gold” thesis, while others believe the asset will continue to serve as a long-term store of value. The next few weeks will be critical in determining whether Bitcoin ETFs can attract new inflows or if further outflows will continue to pressure the market.