U.S. spot Bitcoin exchange-traded funds (ETFs), notably including BlackRock’s bitcoin ETF (IBIT), recorded unprecedented trading volumes on Wednesday, as Bitcoin’s price experienced significant fluctuations. BlackRock’s IBIT ETF experienced a significant trading volume, with over 96 million shares traded. This activity amounted to approximately $3.3 billion in value, setting a new record for the third consecutive day. 

Notably, the trading volume doubled the previous day’s record of $1.35 billion, according to data shared on X by James Seyffart, a Bloomberg ETF analyst. This surge in trading volume coincided with Bitcoin’s price reaching $64,000 before a subsequent 7% decline.

Collectively, the ten spot BTC ETFs achieved a trading volume of $7.7 billion, significantly surpassing the previous high of $4.7 billion from their first trading day on January 11. Among these, both Grayscale’s GBTC and Fidelity’s FBTC exceeded the $1 billion trading mark. Notably, IBIT ranked as the fourth most traded ETF in the U.S. during the session, with three other Bitcoin ETFs also ranking within the top 20.

The substantial trading volumes reflect a growing interest in Bitcoin and related financial products. Bitcoin itself saw a 44% increase in value over the month, further fueling demand for spot Bitcoin ETFs. Over $6.7 billion in net inflows have been directed towards these ETFs since their debut, with BlackRock’s IBIT alone attracting $520 million of fresh funds on Tuesday. Other ETFs such as VanEck’s HODL and Valkyrie’s BRRR also saw notable increases.

Additionally, Grayscale’s GBTC experienced its highest outflow day for February, with $216.4 million exiting the fund, showcasing a mixed response from investors. Despite these outflows, the overall market sentiment towards Bitcoin and its related ETFs remains positive, with substantial trading volumes and inflows indicating strong investor interest and confidence in the cryptocurrency market.

The success of Bitcoin ETFs is prompting other major industry players to consider launching their own Bitcoin ETF products. Among these, Morgan Stanley’s Europe Opportunity Fund has recently updated its filing to potentially include investments in spot Bitcoin ETFs. The move allows Morgan Stanley to offer its clients regulated access to Bitcoin investments, aligning with the growing demand for cryptocurrency exposure within traditional investment portfolios.

Additionally, the fund’s adjustment towards embracing Bitcoin ETFs comes at a time when the cryptocurrency market is experiencing heightened institutional interest. Morgan Stanley’s decision to explore investments in spot Bitcoin ETFs could pave the way for further institutional adoption of cryptocurrencies. This is not an isolated case; the trend is part of a larger movement within the financial industry, with firms increasingly recognizing the potential of digital assets.