• BlackRock’s Bitcoin ETF trading volume surpassed $1.55 billion in the first hour of trading on Monday
• The crypto market suffered amid concerns of an incoming US recession, with Bitcoin and Ethereum seeing significant price drops
• Despite the market downturn, BlackRock’s Bitcoin ETF still holds over $21 billion in net assets
The leading asset manager’s Bitcoin ETF saw over $1.55 billion in trading volume within the first hour on Monday, as broader markets tumbled.
BlackRock Spot Bitcoin ETF Surpasses $1.55B Despite Crypto Sell-Off
Amid a major stock market decline, BlackRock‘s Spot Bitcoin exchange-traded fund (ETF) saw its trading volume exceed $1.55 billion in just the first hour of trading on Monday. The asset management giant’s iShares Bitcoin Trust (IBIT) was not immune to the turmoil hitting markets globally.
Fears of an impending recession in the U.S. have driven panic across global markets. Cryptocurrency prices have been hit hard as well, with a report from CoinShares showing over $528 million in outflows from crypto investment products on Monday alone. The outflows likely represent investors’ reactions to mounting geopolitical concerns.
Volume Surge Comes Amid Extreme Volatility in Broader Markets
With interest rates at their highest level in 23 years and unfavorable economic data triggering fears, the stock market has plunged, with as many as five major trading platforms crashing entirely. The worries over a potential economic slowdown in the U.S. have permeated the crypto market as well.
Despite the backdrop of extreme volatility, BlackRock’s leading Spot Bitcoin ETF saw trading volume top $1.55 billion within just the first hour of trading on Monday. Last week, over $250 million had exited Bitcoin and Ethereum ETFs prior to the market downturn. BlackRock’s product still holds more than $21 billion in net assets.
Cryptocurrency Prices Plunge Across the Board
The turmoil has triggered sharp declines in numerous major cryptocurrencies on Monday. Ethereum has fallen over 16% in the last 24 hours, dropping as low as $2,100 – its lowest level since December 2021.
Bitcoin has fared no better, falling to its lowest point in six months due to the market conditions. BTC is down over 9% in the last day alone, currently sitting around $54,086 after coming close to $70,000 just one week ago.
Conclusion
The trading volume surge for BlackRock’s Bitcoin ETF highlights continued institutional interest in crypto assets, even during periods of extreme volatility. However, the broader sell-off across cryptocurrency markets illustrates how macroeconomic factors can have an outsized impact on nascent digital asset prices. With recession fears mounting, Bitcoin and other cryptos remain highly speculative and volatile.
