Bitcoin ETFs Hit Record Daily Trading Volume, Topping $2.4 Billion Amid BTC Surge
Summary:
The nine newly launched Bitcoin exchange-traded funds (ETFs) peaked at a new daily trading record, with Bitcoin surging to $54,938 on Monday. While trading volumes reached a peak of $2.4 billion on February 26th, BlackRock's IBIT led the group with $1.29 billion. Despite recording a brief decline, overall inflows for the year have now exceeded $5.5 billion. The source of the newfound trading interest remains unclear.
The nine newly established Bitcoin exchange-traded funds (ETFs) have experienced a new daily trading record, with the surge in Bitcoin (BTC) to a high of $54,938 on Monday. The total trading volumes for these funds reached an unprecedented $2.4 billion on February 26th, surpassing the previous record of $2.2 billion which was recorded on their debut day, January 11, as reported by Bloomberg ETF analyst, Eric Balchunas. Both these figures do not include volumes from Grayscale's reimagined Bitcoin ETF product (GBTC). Out of the nine, BlackRock's IBIT saw the highest trading volume on February 26th, with $1.29 billion, marking a 30% increase in its daily record, followed by Fidelity's FBTC with $576 million in volumes. The ARK 21Shares (ARKB) and Bitwise (BITB) ETFs also recorded significant volumes of $276 million and $81 million respectively.
Eric Balchunas, who found the surge in interest curious, observed that trading volumes during the start of trading weeks tend to be high. Echoing Balchunas, James Seyffart, another Bloomberg ETF analyst, mentioned that the day was the second largest on reord in terms of trading volumes at $3.2 billion when adding the volumes from Grayscale's Bitcoin ETF. On the day when the IBIT volumes surpassed the $1 billion mark, Balchunas pointed out that it was the 11th highest volume among all ETFs, referring to such trading volume as significant even for institutional investors.
On the same day, Bitcoin's price reached a two-year high at $54,938. Although the dataset for February 26th is yet to be released, BitMEX Research indicates that more than $583 million flowed into spot Bitcoin ETFs during the four trading days last week. After recording a net outflow of $35.7 million on February 21st, the first non-inflow day since Jan 25, the cumulative inflow for the year now surpasses $5.5 billion.
Published At
2/27/2024 1:45:51 AM
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