March 27, 2024
BlackRock's Bitcoin ETF Hits $1B Daily Volume
Bitcoin ETF

BlackRock’s Bitcoin ETF Hits $1B Daily Volume

The total daily trading volume for spot Bitcoin exchange-traded funds (ETFs) reached over a billion dollars on February 7, with BlackRock’s iShares Bitcoin Trust leading the market.

Bloomberg Intelligence analyst James Seyffart highlighted the significant trading activity for BlackRock’s IBIT, with a daily trading volume of $341.2 million, surpassing Grayscale Bitcoin Trust’s $296.5 million in volume. Fidelity’s FBTC fund ranked third with $200 million in volume, while the remaining seven funds collectively had $188 million in daily volume, contributing to a total exceeding a billion dollars for the day.

However, Seyffart noted that surpassing $1 billion in daily trading volume “isn’t that big of a deal” for Bitcoin ETFs, considering recent days. He emphasized that while it represents an uptick, it remains below the initial weeks of trading.

Simultaneously, the inflows into spot Bitcoin ETFs continued to outpace outflows from Grayscale Bitcoin Trust (GBTC) for the ninth consecutive day. Preliminary data from Farside indicated that GBTC experienced $81 million in outflows on February 7, while the other nine spot Bitcoin ETFs attracted $226 million in inflows, resulting in net flows of $145 million.

BlackRock received an inflow of $56 million, Fidelity’s fund saw an increase of $130 million, and Bitwise’s inflows amounted to $21 million. On February 8, investor and author Fred Krueger observed that the combined Bitcoin holdings of the newly launched nine ETFs were poised to surpass those of MicroStrategy, the largest corporate holder of the asset.

As of February 7, the ETF funds collectively held around 187,000 BTC, while MicroStrategy held 190,000 coins, valued at over $8 billion. Krueger commented on the growing dominance of ETFs, stating, “ETFs are eating the world. They ate every other asset class, and they’re having Bitcoin for dessert.”

Additionally, reports indicated that Fidelity is now allocating spot Bitcoin to its All-in-One Conservative ETF, signaling a positive development according to ETF analyst Eric Balchunas. The robust trading volumes and increasing institutional interest in Bitcoin ETFs underscore the growing mainstream acceptance of digital assets as part of traditional investment portfolios.

Image by Freepik

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