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US Bitcoin ETFs Smash Records with $7.69 Billion in Trading Volumes

Published 29/02/2024, 07:15
© Reuters.  US Bitcoin ETFs Smash Records with $7.69 Billion in Trading Volumes
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  • The US spot BTC ETFs saw $7.69 billion in trading volumes on Wednesday.
  • BlackRock’s iShares Bitcoin Trust ETF (IBIT) claimed 43.5% of the daily total volume.
  • Grayscale’s GBTC and Fidelity’s FBTC took the second and third spots, respectively.

The newly approved ten spot Bitcoin exchange-traded funds (ETFs) in the United States have broken their previous records of trading volumes. The offerings saw a whopping $7.69 billion being traded on Wednesday, breaking their volume record by over one and a half times.

Bloomberg ETF analyst James Seyffart confirmed the development, noting that BlackRock’s iShares Bitcoin Trust (IBIT) claimed 43.5% of the total volume with $3.35 billion, effectively doubling its previous daily record.

The Grayscale Bitcoin Trust (GBTC), securing the second spot, recorded $1.86 billion in trading volume. In comparison, the Fidelity Wise Origin Bitcoin Fund (FBTC) took the third position with $1.44 billion, also doubling its volume record.

Notably, the combined volumes of GBTC and FBTC constituted about 43% of the total trading volume. Bloomberg analyst Eric Balchunas noted that it took only half of the trading day for the nine new ETFs, excluding Grayscale’s, to surpass their previous record which happened two days ago.

On the other hand, Balchunas also dispelled previous speculations, confirming that the volume was primarily driven by “natural demand” rather than algorithmic or arbitrage trading.

“I asked around to some mkt makers and most say this volume is largely [a] function of natural demand vs algo/arb type volume. Word is wirehouse platforms are seriously looking at adding them soon. I’m sure pressure is mounting for them. They like to see track record and get paid off but w grassroots demand like this they gonna have to expedite,” said Balchunas.

Balchunas further added that if the volumes of Bitcoin futures ETFs like BITO are added, the total trading volume of BTC-related ETFs will come close to $10 billion. It is crucial to note that on Wednesday, Bitcoin rose to $64K, its new two-year high, but dropped to $60,000. At the time of writing, data shows that the leading digital asset is trading at $61,400.

The post US Bitcoin ETFs Smash Records with $7.69 Billion in Trading Volumes appeared first on Coin Edition.

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