Options trading on BlackRock's spot bitcoin ETF, IBIT, surged to a record 2.33 million contracts on Thursday as bitcoin crashed.

Bitcoin is down more than 40% from its October highs, but investors in spot Bitcoin ETFs have pulled 6.6% of assets.

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The German lender pointed to institutional outflows, fading liquidity and stalled regulation as the real drivers behind bitcoin’s slump.

The cryptocurrency is trading below key ETF cost levels and nearing its pre-election price floor as inflows to these vehicles fade and headwinds build, the bank said.

Leveraged anti-strategy ETFs are booming as shares in the bitcoin holder slide.

Further downside would likely require a U.S. equity bear market, analysts say, as bitcoin tests weak support.

Spot ETF investors are now sitting on paper losses, which sets the stage for potential large redemptions.

U.S.-listed spot bitcoin and ether ETFs saw one of their worst combined outflow days of 2026 as falling prices, rising volatility and macro uncertainty pushed investors to cut exposure.