Bitcoin ETFs saw a surge in trading activity on Friday and Monday, with combined volumes reaching $9.7 billion and $6.7 billion as tariff headlines rattled risk markets.
BlackRock’s IBIT alone handled over $6.9 billion on Oct. 10 (its second-highest day ever), as investors repositioned around the day’s price volatility.
Bitcoin ETF volume surge
This dramatic uptick in trading volume, far surpassing typical daily averages of $2-3 billion, signals a frenzy of buying and selling rather than straightforward accumulation.
Spot Bitcoin ETFs have become a go-to vehicle for institutional and retail investors seeking exposure to BTC without direct custody hassles. But why the explosion now? The culprit lies in a perfect storm of macroeconomic shocks, specifically escalating tariff threats from US policymakers.
On Oct. 10, headlines about potential 60% tariffs on Chinese imports sent shockwaves through global risk assets, amplifying fears of trade wars and inflation spikes.
Being a hedge against fiat debasement and a high-beta risk asset, Bitcoin plunged nearly 18% intraday from $122,600 to $102,546, its sharpest drop in months.
This volatility created ripe opportunities (and necessities) for trading. Investors rushed to ETFs to execute rapid trades: long-term fund holders trimmed positions to lock in gains from BTC’s summer rally above $125,000, while opportunistic traders piled in at the dip, betting on a rebound.
Short-term speculators amplified the chaos, with leveraged plays on platforms like CME futures spilling over into ETF liquidity.
The result? Turnover skyrocketed as shares changed hands multiple times. Unlike calmer periods, where ETF volumes mirror steady inflows, this spike looks like pure adrenaline: traders using the low-fee, regulated structure of products like IBIT (0.25% expense ratio) as a frictionless on-ramp to BTC volatility.
However, the spike in volume in the past two trading days is in stark contrast with ETF inflows. Farside data showed that on Oct. 10, net out
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Author: Andjela Radmilac
