U.S. spot Bitcoin ETFs saw unprecedented trading activity on November 21, with BlackRock's iShares Bitcoin Trust (IBIT) recording a single-day trading volume of $8 billion, setting a new record since its launch. This pushed the total trading volume of Bitcoin ETFs across the market to a historic high of $11.5 billion. Amid heightened volatility, institutional investors actively adjusted their positions, while Bitcoin stabilized near $84,000 after retreating more than 30% from its peak, further fueling the surge in trading volume.
Despite the robust trading activity, IBIT reported a net outflow of approximately $122 million that day. ETF analyst Eric Balchunas noted that this reflected a "large-scale liquidity rotation" rather than sustained capital withdrawal. IBIT accounted for over 69% of the day's trading volume, solidifying its position as the primary vehicle for institutional Bitcoin exposure. Since its launch in January 2024, IBIT has attracted cumulative inflows of around $62.7 billion.
Overall, Bitcoin ETFs saw a rebound in net inflows, recording $238 million—the first significant inflow in weeks. Prior to this, the sector had faced continuous redemptions throughout November, with cumulative outflows reaching approximately $3.5 billion, making it one of the weakest-performing months this year. Among the inflows, Fidelity's FBTC saw $108 million in net inflows, bringing its cumulative inflows since inception to $11.8 billion. Grayscale's Mini Trust added $84.9 million, while its GBTC product also recorded $61.5 million in net inflows. Just a day earlier, Bitcoin ETFs had experienced their largest single-day redemption in nearly nine months, with net outflows totaling $903 million.
Meanwhile, options trading around IBIT surged, with put option volume hitting a record high, indicating that institutions were actively hedging their long positions. Analysts suggest this hedging activity signals investors are adjusting their portfolios to navigate volatility rather than exiting the market en masse.
Bitcoin has fallen approximately 24% in November and is down about one-third from its all-time high of around $126,000 earlier this year. Market participants are closely watching the critical support level of $80,000, with many analysts warning that a breach could trigger further declines toward $75,000.