BlackRock’s IBIT Bitcoin ETF Sees Record Inflows and Trading Volume
BlackRock’s IBIT spot bitcoin exchange-traded fund (ETF) experienced record daily inflows of $520.2 million on Tuesday, surpassing the previous record of $493.1 million set on Feb. 13. This inflow also exceeded the total net inflows of all U.S. spot bitcoin ETFs combined on Monday, which amounted to $519.8 million. On Monday, IBIT slipped to third place in terms of inflows, with Fidelity’s FBTC and Ark Invest 21 Shares’ ARKB taking the top two spots.
However, BlackRock’s bitcoin fund regained its dominance on Tuesday, with Fidelity’s FBTC trailing behind in second place with $126 million in inflows. Bitwise’s BITB came in third with $18.4 million. Overall, net inflows for all spot bitcoin ETFs reached $576.8 million on Tuesday, marking the highest figure in two weeks.
Charles Edwards, founder of Capriole Investments, noted that the increasing value of bitcoin is driving traditional asset managers to allocate more funds to ETFs. He explained that these managers no longer have the excuse of “inaccessibility” or “regulatory risk” to avoid investing in cryptocurrency.
IBIT Breaks Daily Trading Volume Record
In addition to record inflows, BlackRock’s IBIT also achieved a new daily trading volume record of $1.36 billion on Tuesday. This surpassed the previous high of $1.33 billion set just one day earlier. The total trading volume across all spot bitcoin ETFs reached $3.15 billion on Tuesday, making it the third-largest trading day since the launch of these ETFs.
Bloomberg Senior ETF Analyst Eric Balchunas commented on the intense trading volume, stating that IBIT’s daily volume of $1.3 billion is higher than the trading volume of most large-cap U.S. stocks. He speculated that this surge in volume could be a new normal or a short-term burst related to algorithmic trading or arbitrage.
Moreover, Balchunas highlighted that IBIT witnessed over 100,000 individual trades on Tuesday, a significant increase compared to its previous average of 30,000 to 60,000 trades. This indicates that the ETF has entered a new phase of high-volume trading.
Total Trading Volume Nears $60 Billion
The cumulative trading volume for all spot bitcoin ETFs is approaching $60 billion, demonstrating the growing interest and participation in these investment vehicles.
On Monday, excluding Grayscale’s converted GBTC fund, the nine U.S. spot bitcoin ETFs surpassed 300,000 BTC in assets under management for the first time.
Bitcoin Continues to Rise
Bitcoin’s price is currently at $59,233, with a 5% increase over the past 24 hours. The cryptocurrency has gained more than 15% in the last week and 40% year-to-date. It is now just $10,000 away from its previous all-time high of around $69,000 set in November 2021.
🔥 Hot Take: BlackRock’s IBIT Leads Inflows and Trading Volume 🚀
BlackRock’s IBIT spot bitcoin ETF has demonstrated its dominance once again with record inflows and trading volume. The increased allocation from traditional asset managers reflects their confidence in bitcoin’s future performance and their recognition of the accessibility and reduced regulatory risk offered by ETFs. As bitcoin continues to rise, the inflows into IBIT are expected to grow further, solidifying its position as a leading investment option for both institutional and retail investors. The surge in trading volume also indicates the growing interest and participation in the cryptocurrency market, with ETFs providing a convenient and regulated way to invest in bitcoin. With the cumulative trading volume nearing $60 billion, the spot bitcoin ETFs have established themselves as significant players in the crypto space.
By
By
By
By
By