US Bitcoin ETFs Experience Record $10 Billion Trading Amid Market Swings
Summary:
On March 5, American Bitcoin (BTC) exchange-traded funds (ETFs) witnessed a record trading volume of $10 billion, as Bitcoin reached a new historical peak before dropping about 12%. BlackRock's iShares Bitcoin ETF (IBIT) led with the highest trading volume among the funds. The significant fluctuations in Bitcoin's price on the U.S. trading day were deemed a common scenario during bull markets by analyst Bit Paine.
On March 5, American Bitcoin (BTC) exchange-traded funds (ETFs) witnessed a record-breaking trading volume of $10 billion. This happened as Bitcoin achieved a new historical high, only to experience a roughly 12% drop in the next five hours. Bloomberg ETF analyst Eric Balchunas referred to these figures as exceptionally high for ETFs less than two months old in a post dated March 5.
Alessandro Ottaviani, a Bitcoin analyst, suggested a slightly downplayed trading volume of $9.58 billion. Regardless, it surpassed the previous milestone of $7.7 billion recorded on February 28.
Of the various funds, BlackRock's iShares Bitcoin ETF (IBIT) led the pack with the highest volume at $3.7 billion. In comparison, the Grayscale Bitcoin Trust (GBTC) and the Fidelity Wise Origin Bitcoin Fund (FBTC) accumulated $2.8 billion and $2 billion respectively.
On the US trading day, Bitcoin had significant price fluctuations, hitting a new historic peak of $69,200 around 3:00 pm UTC on March 5. However, it took a 12% dip to reach a low of $60,860 roughly five hours later, as per data from CoinGecko. Bitcoin managed to partially bounce back to $63,350 at the time of writing, despite marking less than 6% in the last 24 hours.
Bitcoin ETFs including IBIT and FBTC faced a decrease of about 8.6% on the same day, matched by other spot Bitcoin ETFs as per information from Google Finance.
In a joking vein, a March 5 post by analyst Bit Paine, suggested to the newcomers in Bitcoin via ETFs that this price fluctuation is a common scenario during bull markets to weed out leveraged speculators.
Paine stated that these newcomers are unaccustomed to such instabilities as they expect government interventions when their traditional stocks drops by more than 10% in a day.
In response, Balchunas expressed agreement, stating indicative measures and the Federal Reserve existed to safeguard them from such instances.
Related Content: Bitcoin achieves its greatest day so far — Is Bitcoin's $100K value predestined?
As Bitcoin increasingly approaches the $1M mark, the 'Wolf Of All Streets' shares his apprehensions.
Published At
3/6/2024 1:54:49 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.