Nine new spot Bitcoin ETFs, other than GBTC, have set a record in the world of cryptocurrency trading with a tremendous daily volume of $2.4 billion. Bloomberg analyst Eric Balchunas reported that this is an incredible feat to achieve, and it represents twice the number of trades that had been made beforehand.
According to the tweet on this milestone by Balchunas, the BlackRock IBIT alone contributed about $1.3 billion to the total volume, which was up almost 30% from their prior record high. He spoke about why this happened with reference to a rally in prices as being among factors that may have caused increased demand, as shown especially in the first Monday trading after the weekend. He stressed that such an increased volume indicates large institutional interest and reveals liquidity’s significance in ETF markets.
Moreover, Bloomberg analyst James Seyffart also added to the discussion by pointing out how Bitcoin ETFs collectively had their second most traded day ever recorded, involving $3.2 billion worth of trading. Seyffart said that his total does not include GBTC due to its uniqueness so as to avoid complexity.
Balchunas addressed any possible misunderstandings about the data and identified the differences between his graphs and Seyffart’s graph, stressing that he did not include GBTC in his analysis so as to make it more understandable among other new ETFs. Although they are dissimilar, both of these analysts offer useful information on increased Bitcoin ETF trading activity that has never occurred before.
Net Inflows, Bitcoin ETFs in Focus
Meanwhile, based on the latest data from SoSoValue, there was a $519 million net inflow in Bitcoin spot ETFs on February 26th. However, Grayscale’s GBTC had a net outflow that was worth $22.37 million marking a decrease during the fourth straight trading session and an all-time low.
In this regard, Fidelity’s FBTC recorded the largest single-day net inflow at about $243 million contributing to its aggregate historical net inflow of around $4.35 billion. Afterward, Ark ETF ARKB followed suit with one-day net inflows worth $130 million, raising its total historical net inflow to $1.53 billion.
Nonetheless, the heightened trading activity and increased net inflows underscored rising investor appetite and trust in Bitcoin ETFs revealing a maturing market and potentially paving the way for more institutional adoption broadly.
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