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.
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.
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.
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.
This gap illustrates a key distinction: trading volume gauges gross activity (total shares traded), often inflated by back-and-forth churn during swings, whereas net inflows measure true capital addition after redemptions. In volatile times, the former surges as traders react, but the latter lags unless sentiment shifts durably bullish.
In March 2025’s bull run, volumes and inflows synced at $15-20 billion days, fueled by pension funds allocating anew. Tariff fears, however, evoke 2022’s macro rout, where BTC volumes spiked 5x without net gains.
Outflows jumped to $326.4 million on Oct.13 because the dust had settled, and caution took over. Bitcoin rebounded slightly to $115,250 (up 2.3% from the Oct. 10 close), letting some investors cash out gains.
Yet, without corresponding inflows above $750 million daily, sustained price upside may hinge on broader macro relief.
