Spot Bitcoin ETFs Hit $50 Billion in Trading Volume

In the last six weeks, demand for spot Bitcoin exchange-traded funds (ETFs) has surged, with trading volumes surpassing $50 billion, according to data from The Block.

This growth follows the Securities and Exchange Commission’s (SEC) approval of the first batch of spot Bitcoin ETFs on January 11, which paved the way for fund providers like BlackRock, Fidelity, and Bitwise to launch their products.

Trading Volume of Bitcoin ETFs Surged By 78% in February

From early February to the end of trading on Thursday, volumes for spot Bitcoin ETFs surged from $28.3 billion to $50.5 billion.

The highest daily trading volume reached over $2.5 billion on Tuesday, with Thursday’s volume at $1.2 billion. Among the leading funds, BlackRock’s IBIT led with $457.2 million, followed by Grayscale’s GBTC and Fidelity’s FBTC at $348.8 million and $255.7 million, respectively.

Grayscale’s GBTC, previously a trust, saw its market share drop to 28.6% from 50.5% as investors favored lower-fee alternatives. Conversely, BlackRock’s IBIT increased its market share from 22.1% to 37.4%, with Fidelity’s FBTC at 20.9%.

On Thursday, net inflows for spot Bitcoin ETFs reached $251.4 million, following net outflows of $35.7 million on Wednesday. Fidelity’s FBTC attracted the most inflows, adding $158.9 million, while Grayscale’s GBTC experienced the most outflows, losing $55.7 million. Total net flows now stand at around $5.3 billion.

[1/3] Bitcoin ETF Flow – Up to 22 Feb 2024

All data in. +$251.4m net flow on 22nd Feb. A strong day. pic.twitter.com/IdrCmgq5u8

— BitMEX Research (@BitMEXResearch) February 23, 2024

Excluding Grayscale’s GBTC, the nine new spot Bitcoin ETFs have accumulated nearly 300,000 BTC, with 292,615 BTC in assets under management, equivalent to around $14 billion, according to BitMEX Research.

In contrast, Grayscale’s GBTC has seen a drop in Bitcoin holdings, decreasing from around 619,000 BTC on January 11 to 454,660 BTC ($24 billion) as of Thursday.

Bitcoin is currently trading at $51,138, down approximately 2% over the past week but up 29.4% this month and 21% year-to-date.

 

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