Spot Bitcoin ETFs Triple Trading Volume in March; BlackRock's IBIT Dominates
Summary:
March saw a significant rise in trading volume for spot Bitcoin exchange-traded funds (ETFs), hitting $111 billion, almost tripling the figure from February. The increase was driven mainly by Grayscale and BlackRock ETFs. The latter's IBIT consistently dominated the ETF market. While BlackRock's IBIT and Fidelity's FBTC experienced inflows, Grayscale's GBTC recorded massive outflows, leading to a 46% fall in its assets under management. The advent of spot Bitcoin ETFs has led to a transformation in the BTC markets, pushing them to new highs.
Trading volume for spot Bitcoin exchange-traded funds (ETFs) saw a sharp increase in March, hitting a staggering $111 billion. This figure easily dwarfs February's trading volume, almost tripling it, primarily driven by Grayscale and BlackRock ETFs.
Bloomberg ETF expert Eric Balchunas released data showing that, in contrast to the $42.2 billion from February, the trading volume for spot Bitcoin ETFs in March managed to reach $111 billion. It is important to remember that February marked the start of full trading for Bitcoin (BTC) investment goods, which arrived in the market on January 11. Thus, the significant uptick in March amplifies the growing interest in spot Bitcoin ETFs.
When it comes to ETF market share, BlackRock's Bitcoin ETF, IBIT, is king. Trailing behind is Grayscale's GBTC and then Fidelity's FBTC. Balchunas confirmed this in social media Post X, sharing a graphic created by James Seyffart, another analyst that illustrates IBIT's soaring dominance and how it now outcompetes GBTC in market share. Balchunas described all ETFs as successful, but singled out IBIT as the top performer in volume.
Data captured by Farside Investors on April 1 revealed that spot Bitcoin ETFs recorded overall net outflows totaling $86 million. While BlackRock's leading IBIT ETF posted an inflow of $165.9 million, it was undermined by Grayscale's massive outflow of $302.6 million. On the same day, Fidelity's FBTC recorded the second biggest inflows of $44 million while ARK Invest 21Shares ETF ARKB experienced its first outflows since inception on January 11, totaling $300,000.
The situation in Grayscale's GBTC is very different. Having recorded over $300 million outflows on April 1, GBTC has now seen a total of $15 billion in outflows. Assets under management for GBTC are now down 46% to just $22 million, as per Coinglass data.
The popularity of BlackRock and Fidelity's spot Bitcoin ETFs, which last month had around $18 billion and $10 billion under management respectively, is unabated. They have been the biggest winners regarding inflows. Spot Bitcoin ETFs have revolutionized the BTC markets, pushing them to unprecedented peaks in March. Market observers are predicting a unique cycle that intertwines the success of the ETFs and the looming Bitcoin supply halving, slated for less than 20 days in the future.
Please note that the contents of this article do not constitute financial advice or recommendations. Each investment and trading move carries certain risks, and individuals should undertake their own investigations before making any decisions.
Published At
4/2/2024 9:05:00 PM
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