U.S. spot Bitcoin ETF surpasses $150 billion in cumulative trading volume

adminMarch 20, 2024

Cumulative trading volume for U.S. spot Bitcoin exchange-traded funds (ETFs) surpassed $150 billion on Tuesday, less than 10 weeks after the Securities and Exchange Commission approved ETFs from BlackRock, Fidelity, Bitwise and others.

Cumulative spot Bitcoin ETF volume has increased by $50 billion since March 8, when total volume first reached $100 billion, reaching $151.4 billion by the close of trading yesterday, according to The Block’s data dashboard. .

Spot Bitcoin ETF trading volume on Tuesday was $5.6 billion, led by BlackRock’s IBIT at $2.5 billion, followed by Grayscale’s GBTC and Fidelity’s FBTC at $1.5 billion and $962 million, respectively.

Grayscale’s high-fee GBTC fund has gradually lost market share by trading volume, from 50.5% when the spot Bitcoin ETF launched on January 11 to 26.5% as of yesterday, consistent with ongoing daily outflows. . BlackRock’s IBIT was a major beneficiary, growing its market share from 22.1% to 45.2% over the same period. Fidelity’s FBTC ranks third with 17.2% market share.

Spot Bitcoin ETFs recorded daily net outflows as Bitcoin fell 10%.

The US spot Bitcoin ETF consolidation recorded a record net outflow of $326.2 million yesterday, compared to the previous record of $158.4 million set on January 24, according to data from BitMEX Research. It is more than twice that of .

Grayscale’s GBTC recorded outflows of $443.5 million, following record outflows of $642.5 million on Tuesday. It was registered on Monday. “Grayscale Bitcoin BTC

+0.25%
Trust had the most outflows of *all* ETFs since the stock market lows in March 2009… It only took two months.” Nate Geraci, President of The ETF Store famous.

BlackRock’s typically dominant ETF declined significantly from $451.5 million Monday to $75.2 million yesterday, suppressing inflows into other funds as well. This is the lowest since February 7. Fidelity’s FBTC came in second with $39.6 million, and Bitwise’s BITB came in third with $2.5 million. All other spot Bitcoin ETFs registered zero flows on Tuesday.

According to GSR research analyst Brian Rudick, spot Bitcoin ETF flows have been the main driver of Bitcoin price action since launch.

“Remember the good old days from Monday to Wednesday last week when daily inflows totaled $2.2 billion over just three days? Over the next four trading days, we saw net outflows of $150 million, including today’s record $326 million outflow. And BTC has fallen 16% since then. So how did the tide turn on a dime?” Rudick said.

Rudick said anecdotal evidence suggests asset managers are investing a small number of their clients in ETFs, and IBIT’s average trade size of $13,000 suggests retailers are behind the inflows, making it easier to stop when the price rise stops. Anecdotal evidence suggests that it depends on who is purchasing the product. But Rudick still expects inflows to exceed expectations in the long term.

Yesterday, the price of Bitcoin fell 10% from a high of $68,136 to a low of $61,506, recording a net outflow of funds for two consecutive days for the first time since January amid heightened market volatility. The cryptocurrency briefly fell to a low of $60,771 early this morning before recovering.

According to The Block’s price page, Bitcoin is currently trading at $63,170, up more than 50% year-to-date.

BTC/USD price chart. Image: Block/TradingView.

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adminMarch 20, 2024