• 19 June, 2024
Market News

BlackRock Leads as Bitcoin ETFs Hit $1 Billion Daily Volume Milestone: What’s Next?

Bitcoin exchange-traded funds (ETFs) experienced a remarkable surge in trading volume on February 7, surpassing a billion dollars in total daily volume. BlackRock emerged as the leader in this trend, with its Bitcoin ETF, IBIT, dominating the market with a daily trading volume of $341.2 million, overtaking the Grayscale Bitcoin Trust, which recorded $296.5 million in volume.

Moreover, Fidelity’s FBTC fund secured the third position with a trading volume of $200 million. The combined volume from the remaining seven funds amounted to $188 million, contributing to the unprecedented milestone of over a billion dollars in total daily trading volume.

However, Bloomberg Intelligence analyst James Seyffart downplayed the significance of crossing the $1 billion mark, stating that it represents a modest increase from recent days and remains below the initial trading weeks’ volumes. Nonetheless, the consistent inflows into spot Bitcoin ETFs have outpaced the outflows from GBTC for the ninth consecutive day.

According to the initial data of Farside, GBTC saw $81 million in outflows on February 7 compared with other nine spot Bitcoin ETFs that accumulated inflows worth $262 million amounting to a net flow of about $ 145 million. Significantly, BlackRock attracted $56 million in inflows while Fidelity’s fund witnessed a large increase of $130 million and Bitwise received inflows amounting to $21 million.

On February 8, investor and author Fred Krueger highlighted a significant development in the ETF landscape. He noted that the combined Bitcoin holdings of the newly launched nine ETFs were poised to exceed those of MicroStrategy, the largest corporate holder of the asset.

As of February 7, ETF funds collectively held around 187,000 BTC, while MicroStrategy possessed 190,000 coins, valued at over $8 billion. Krueger remarked that ETFs are eating the world further stating that they ate every other asset class, and they’re having Bitcoin for dessert.

In a related development, Fidelity announced its allocation of spot Bitcoin to its All-in-One Conservative ETF, signaling a positive trend in ETF adoption. ETF analyst Eric Balchunas commented, that if they’re adding to conservative, that they are probably a good sign.

The burgeoning interest in Bitcoin ETFs reflects a growing investor appetite for cryptocurrency exposure through traditional investment vehicles, marking a significant evolution in the financial markets landscape.

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