Spot Bitcoin ETF Trading Volume Surpasses $150 Billion as BlackRock, Fidelity, and Bitwise Gain Approval
Cumulative trading volume for U.S. spot bitcoin exchange-traded funds (ETFs) has reached a significant milestone, surpassing $150 billion. This achievement comes less than 10 weeks after the Securities and Exchange Commission approved ETFs from BlackRock, Fidelity, and Bitwise, among others.
Since March 8, spot bitcoin ETF cumulative trading volume has increased by $50 billion alone. The total volume reached the $100 billion mark on that day and has continued to grow steadily since then. As of yesterday, the cumulative trading volume stood at $151.4 billion.
Tuesday saw spot bitcoin ETF trading volume of $5.6 billion, with BlackRockโs IBIT leading the way at $2.5 billion. Grayscaleโs GBTC and Fidelityโs FBTC followed closely behind with volumes of $1.5 billion and $962 million, respectively.
The market share among spot bitcoin ETFs has seen some interesting shifts in recent months. Grayscaleโs higher fee GBTC fund has experienced a decline in market share from 50.5% to 26.5% since the launch of spot bitcoin ETFs on January 11. BlackRockโs IBIT, on the other hand, has seen its market share grow from 22.1% to 45.2%. Fidelityโs FBTC holds a 17.2% share of the market.
Record Outflows as Bitcoin Drops 10%
The U.S. spot bitcoin ETFs experienced a record net outflow of $326.2 million on Tuesday, surpassing the previous record of $158.4 million set on January 24. Grayscaleโs GBTC saw $443.5 million in outflows, following the record outflows of $642.5 million it registered the day before.
Inflows into other funds were also subdued, with BlackRockโs ETF dropping significantly from $451.5 million to just $75.2 million. Fidelityโs FBTC had inflows of $39.6 million, while Bitwiseโs BITB received $2.5 million. The remaining spot bitcoin ETFs had zero flows on Tuesday.
These outflows and market fluctuations have played a significant role in bitcoinโs price action since the launch of spot bitcoin ETFs. Analysts believe that the composition of buyers, with fewer wealth managers investing in the ETFs, and retail investors driving the inflows, has contributed to the recent changes in flow patterns.
Bitcoin Price Volatility
The past few days have been marked by increased market volatility as bitcoinโs price dropped by 10% from its peak of $68,136 to a low of $61,506. The cryptocurrency briefly dipped to a low of $60,771 before recovering.
Despite these fluctuations, bitcoin is currently trading at $63,170, representing a year-to-date increase of over 50%.
Hot Take: Spot Bitcoin ETF Trading Volume Hits New Milestone
The approval of spot bitcoin exchange-traded funds from major players like BlackRock, Fidelity, and Bitwise has had a significant impact on the crypto market. With cumulative trading volume surpassing $150 billion in less than 10 weeks, it is clear that these ETFs have gained traction among investors.
However, recent record outflows and market volatility indicate that there are still challenges ahead for spot bitcoin ETFs. The decline in market share for Grayscaleโs GBTC and the rise of BlackRockโs IBIT highlight the shifting dynamics within the market.
As bitcoinโs price continues to fluctuate, it remains to be seen how spot bitcoin ETFs will perform in the long term. Retail investors have played a crucial role in driving inflows, but their behavior can change when prices stop climbing. Wealth managersโ reluctance to invest in these ETFs may also impact their overall success.
Despite these uncertainties, the trading volume and market interest in spot bitcoin ETFs demonstrate the growing mainstream acceptance of cryptocurrencies. As more institutional players enter the market, it is likely that we will see further developments and innovations in this space.
Theon Barrett shines as a distinguished crypto analyst, accomplished researcher, and skilled editor, making significant strides in the field of cryptocurrency. With an astute analytical approach, Theon brings clarity to intricate crypto landscapes, offering insights that resonate with a broad audience. His research prowess goes hand in hand with his editorial finesse, allowing him to distill complex information into accessible formats.