Santiment, one of the leading on-chain analyst firms, reported that in the world of cryptocurrency, specifically regarding Bitcoin exchange-traded funds (ETFs), activity has recently hit unprecedented levels. Record daily highs have been achieved by both Bitcoin ETF volume and inflows, which some argue might be due to markets’ closure on #PresidentsDay. A vast combined volume of $6.94 billion marked the seven largest ETFs. Remarkably, individual ETFs like $FBTC, $BITB, $HODL, $ARKB, and $BTCO sky-rocketed to all-time highs, reflecting an increasing curiosity about digital currency’s investment prospects.
Analyzing Bitcoin ETF Surge With Eric Balchunas
Eric Balchunas, an ETF analyst at Bloomberg, also reported that The Nine had its most voluminous trading day ever since its inception, with roughly $2 billion in combined trading. This upsurge was mainly driven by huge investments from some ETFs like $HODL, $BTCW, and $BITB, which all broke their previous records.
He further pointed out that there was a fascinating activity around HODL, with a daily volume reaching $258 million, which is 14 times more than the mean values. Remarkably, it also involved 32000 individual traders, and this means even more when considering that figure alone.
The analysts were left perplexed by the sudden and dramatic rise in trading volumes, especially in ETFs such as $HODL and $BTCW. Surprisingly, Balchunas was bewildered about the spike, implying whether these ETFs had added over the weekend onto new trading platforms the observation of unexpected increases in trading. He wondered if it could have been due to this. These odd natural eruptions are a rarity on the ETF market, which has made this thing so mind-boggling for experts to understand.
In addition, daily trades increased twelvefold from an average of $12 million per day for BTCW, reaching $154 million. Simultaneously, there were 23,000 individual trades, twenty-five times more than what occurred before. On the other hand, some ETFs did not show such exorbitant changes as IBIT observed increased but relatively subdued trading volumes.
Analysts caution against jumping to conclusions as they address speculation about potential sell-offs amid Bitcoin’s minor price dip. They assert that making these assumptions does not look at the whole picture, including the newness of these ETFs and the variety of Bitcoin holders beyond just those in the ETF community; hence, they refuse to call it dumping by any means. Moreover, naming small price corrections “dumping” while there is still some kind of a rally can lead to groundless panic, which, therefore, calls for a dose of realism in an extremely volatile market.
Related Reading | BitMex Co-Founder Sparks Debate: Is Cardano’s dApp Ecosystem Falling Short?