Today is not just another ordinary day in crypto – it’s a monumental one. Exchange-traded funds (ETFs) have officially crossed the $2 billion mark, signaling a seismic shift in the landscape.
The recent surge in trading volume for Bitcoin ETFs has turned heads, none more so than Eric Balchunas, a senior analyst at Bloomberg Intelligence. On Monday, these ETFs skyrocketed to an astonishing $2.4 billion in volume, a figure twice the customary daily average.
Another intense volume day for the Nine with well over $2b traded. $IBIT broke its personal record again w/ $1.3b (for context that’s more than most large cap US stocks trade). I don’t know if this is a new normal or some kind of short-term algo/arb-related burst a la $HODL. pic.twitter.com/KkCkdQKe9r
— Eric Balchunas (@EricBalchunas) February 27, 2024
Bitcoin ETFs Rise: A Closer Look at the Numbers
From January 11 to February 26, 10 spot Bitcoin ETFs, including GBTC, witnessed a net inflow of an impressive $6.03 billion, according to Bitmex Research. Launch day witnessed the highest inflow at $655.2 million, closely followed by February 13 with $631.2 million.
This record-breaking ETF volume coincided with Bitcoin’s Monday surge, breaching the $54,000 threshold for the first time since 2021, ultimately reaching $57,000 and clearing a staggering $70 million in short positions within an hour. As of now, Bitcoin is trading at $56,835.
Also Read: Bitcoin ETF Approved: Exploring the Next Big Catalyst For Crypto Bull Run 2024
BlackRock’s IBIT Takes the Lead
Among the standout performers, BlackRock’s iShares Bitcoin Trust (IBIT) stole the spotlight, contributing a substantial $1.3 billion to the overall $2 billion milestone. This marks a remarkable increase of around 30% from its previous high, highlighting the escalating investor appetite for Bitcoin exposure within traditional financial markets.
Did You Know? BlackRock’s Ethereum ETF: March 10th Deadline Could Be Make-or-Break!
However, it’s important to note that these figures exclude Grayscale’s Bitcoin ETF, currently undergoing a transition from its existing Grayscale Bitcoin Trust (GBTC) to an ETF.
Also shoulda been more clear in my initial tweet. The only difference between Eric’s chart and mine is that I included $GBTC. Without GBTC this is a record volume # for the Newborn Nine as Eric pointed out. https://t.co/Qw2HkBloPn
— James Seyffart (@JSeyff) February 26, 2024
While initially mistaken for a spot Bitcoin ETF, the Hashdex Bitcoin Futures ETF (DEFI) clarified that it currently operates as a futures product. Nevertheless, plans are underway to transition towards holding actual spot Bitcoin pending approval from the U.S. Securities and Exchange Commission (SEC).
Bitcoin Hits Two-Year High
Bitcoin reached roughly $57,000 on Tuesday, a two-year record during Asian trade. Strategic acquisitions and spot Bitcoin ETF regulatory approvals have fueled this rise, suggesting cryptocurrency’s mainstream adoption.
Reflecting on this rising trend, Michael Saylor, co-founder of MicroStrategy, remarked on the decade-long wait for Bitcoin ETFs. Mainstream investors are now gaining access to Bitcoin through these ETFs, resulting in a substantial influx of capital into the asset class.
Spot Ethereum ETFs Next on the Horizon?
Following the massive success of Spot Bitcoin ETFs, the demand for spot Ethereum ETFs in the U.S. market is on the rise. Numerous investment firms, including BlackRock, Fidelity, Grayscale, VanEck, Invesco, Franklin Templeton, Galaxy, Ark Invests, and 21Shares, are seeking approval from the Securities and Exchange Commission (SEC).
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Qadir AK
Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
