BlackRock's Bitcoin ETF Sets New Daily Trading Volume Record amid BTC Price Decline
Summary:
BlackRock's Bitcoin (BTC) exchange-traded fund (ETF), the iShares Bitcoin Trust (IBIT), broke its own record with daily trading volumes of 99.3 million shares (over $3.9 billion) on March 14, despite BTC falling 6% from its daily high on the same day. The IBIT outpaced Grayscale Bitcoin Trust (GBTC) which had a trading volume of $1.96 billion. Notably, each of the ten new Bitcoin ETFs have already surpassed previous trading volume records halfway into the month, with combined volumes of $65 billion.
Record daily trading volumes were recorded by BlackRock's Bitcoin (BTC) exchange-traded fund (ETF), even as BTC experienced a 6% fall from its daily peak throughout the course of the U.S. trading day. According to Barchart data from March 14, the iShares Bitcoin Trust (IBIT) saw trading of 99.3 million shares that day, achieving a transaction volume of over $3.9 billion and surpassing its previous $3.7 billion record from March 5. This spike coincided with BTC dipping 6% from its daily apex during the U.S. trading period, a swing it has begun to rectify. The IBIT was the eighth most heavily traded ETF on March 14.
Since its introduction in January, BlackRock's spot Bitcoin ETF has led the pack in terms of trading volume and net inflows among the ten newest ETFs. Its most fruitful day for net inflows occurred on March 12, recording $849 million in flows, the highest so far of any Bitcoin fund. Despite this, Grayscale Bitcoin Trust (GBTC) remains the biggest of the ten U.S. Bitcoin ETFs in terms of assets, although its March 14 trading volume trailed IBIT with a total of $1.96 billion.
By March 10, Grayscale's ETF market share among the Bitcoin ETFs dropped below 50%. Its conversion from a trust to an ETF, coinciding with the inception of nine new funds, resulted in GBTC experiencing outflows amounting to nearly $11.7 billion.
According to Bloomberg ETF analyst Eric Balchunas, despite being only halfway through the month, the combined monthly trading volumes of the ten ETFs have already exceeded the numbers seen in previous months. The trading volume for the ETFs has already reached $65 billion so far this month, over $20 billion more than February's volume total of roughly $42 billion.
The net capital inflows to the ETFs have been keeping up the momentum, setting a record of over $1 billion in net daily inflows as recently as March 12. Bitcoin's price, on the other hand, declined 2% in the last 24 hours as per Cointelegraph Markets Pro data. It reached a daily maximum of over $73,500, then fell 6.3% to a low point of $68,855 just prior to U.S. stock market closing at 3:45 p.m. New York time (7:45 p.m. UTC). Its value has since rallied 4%, putting it back over $71,600.
Published At
3/15/2024 4:29:56 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.