1. U.S. spot bitcoin ETFs, led by BlackRock’s IBIT, set record volumes, reaching $3.3 billion in a day.
2. Ten spot BTC ETFs hit $7.7 billion in combined trading, with Grayscale’s GBTC and Fidelity’s FBTC each surpassing $1 billion.
3. ETF frenzy coincided with bitcoin’s surge to $64,000, then a swift fall to $60,000, fueled by over $6.7 Billion.
In a surge of market activity, U.S.-listed spot bitcoin ETFs witnessed unprecedented trading volumes, notably led by BlackRock’s IBIT, which attracted a staggering $520 million in fresh funds on Tuesday, according to BitMEX Research data.
BlackRock’s bitcoin ETF, IBIT, has dominated the ETF market, breaking its volume record for the third consecutive day. On Wednesday, over 96 million shares, equivalent to roughly $3.3 billion, changed hands – more than twice the previous day’s record of $1.35 billion- Nasdaq data
Widespread ETF Trading Frenzy
The collective trading volume of the ten spot BTC ETFs reached a staggering $7.7 billion. This is by surpassing the previous record of $4.7 billion from their debut on January 11, wrote James Seyffart on X.
Grayscale’s GBTC and Fidelity’s FBTC both exceeded the $1 billion mark in trading volume.
“This is officially a craze,” Balchunas said in an X post. “These numbers are absurd.”
The ETF frenzy coincided with wild price fluctuations in Bitcoin, surging to $64,000 during the day and then swiftly falling to $60,000. The market activity intensified as bitcoin surpassed $60,000 before U.S. market hours, marking the first time since November 2021.
Market observers attribute the surge in bitcoin’s price to the growing demand for spot bitcoin ETFs. The ten newly listed spot ETFs collectively attracted over $6.7 billion in net inflows since their debut in January. This week, allocations to spot ETFs accelerated, exceeding $1 billion in two days.
BlackRock’s Dominance and Market Impact
At the midpoint of the trading session, IBIT became the fourth most traded ETF in the U.S., with three other new spot bitcoin ETFs ranking in the top 20. Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, emphasized the extraordinary nature of this market craze, stating, “This is officially a craze; these numbers are absurd.”
Though Bitcoin experiences a 44% gain in a month, the surge in ETF trading adds a new layer of dynamism to the crypto market, showcasing the growing influence of ETFs in the broader financial landscape.
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