Record-Breaking Trading Volumes Reported For U.S. Bitcoin ETFs Amid BTC Rally
Summary:
U.S. Bitcoin (BTC) exchange-traded funds (ETFs) witnessed a record trading volume, reaching $7.69 billion on February 28, outperforming the previous record by over 50%. BlackRock's iShares Bitcoin ETF (IBIT) contributed the largest share, accounting for 43.5% of the total volume. Meanwhile, the Grayscale Bitcoin Trust (GBTC) and the Fidelity Wise Origin Bitcoin Fund (FBTC) stood second and third respectively. The surge in volume occurred as Bitcoin rallied to an over two-year peak of $64,000. GBTC also saw significant outflows, recording the highest since January 30.
A fresh record for trading volumes in U.S. Bitcoin (BTC) exchange-traded funds (ETFs) has been set, surpassing the previous record by more than 50%. On February 28, the ten ETFs achieved a collective trading volume of $7.69 billion, according to data reported by Bloomberg ETF analyst James Seyffart. This amount significantly exceeds the previous record of $4.66 billion, which took place on January 11, the fund's launch day. The iShares Bitcoin ETF (IBIT) by BlackRock constituted 43.5% of the total. It recorded a daily trading volume of $3.35 billion, double its previous daily high, and almost equal to the total for all ten ETFs on February 27.
The Grayscale Bitcoin Trust (GBTC) set the second highest daily record with $1.86 billion in trading volume, while the Fidelity Wise Origin Bitcoin Fund (FBTC) came in third, doubling its prior volume record with $1.44 billion. The combined trading volumes of GBTC and FBTC accounted for around 43% of the overall volume. In a feat that only took half a trading day, nine of the new ETFs - excluding Grayscale's - surpassed their old record, according to Bloomberg analyst Eric Balchunas. The volume record went on to double, with approximately $5.8 billion by market close. The total number of individual transactions also doubled to over half a million.
Balchunas mentioned contacts in market making suggested the increased volume is mostly natural demand, instead of algorithmic or arbitrage trading. This record-breaking day coincided with Bitcoin rallying over 10% to a more than two-year peak of $64,000. Although it later fell to $60,000, it managed to rebound slightly to trade above $62,000 at press time according to Cointelegraph Markets Pro. Meanwhile, GBTC experienced net outflows of $216.4 million on February 28, the highest since January 30, when it reached $220.7 million, making a new February record.
Published At
2/29/2024 3:47:55 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.