Spot Bitcoin ETFs Make History, Surpassing 50 Billion dollars in Trading Volume

Crypto News- The recent achievement of over $50 billion in cumulative trading volume by newly introduced spot Bitcoin exchange-traded funds (ETFs) marks a significant milestone in the realm of cryptocurrency investment products. BitMEX Research data showcases the six-week trading statistics and the performance of key assets.

Spot Bitcoin ETFs Make History, Surpassing 50 Billion dollars in Trading Volume

This milestone follows regulatory green lights from the Securities and Exchange Commission (SEC) for ETFs offered by major players like BlackRock, Fidelity, and Bitwise earlier in January.

Regulatory validation ignites Bitcoin’s ascent

The upsurge in trading volume for spot Bitcoin ETFs mirrors escalating investor interest and trust in these regulated investment instruments. Statistics reveal that cumulative trading volume for spot Bitcoin ETFs surged from $28.3 billion at the month’s start to $50.5 billion by the close of Thursday’s trading session.

A noteworthy highlight was Tuesday’s multi-week peak trading volume surpassing $2.5 billion, significantly bolstering the overall cumulative trading volume. Thursday alone witnessed spot Bitcoin ETF trading volume hitting $1.2 billion, with BlackRock’s IBIT leading at $457.2 million, trailed by Grayscale’s GBTC and Fidelity’s FBTC at $348.8 million and $255.7 million, respectively.

Market share dynamics among spot Bitcoin ETFs underscore competitiveness. Grayscale’s higher fee GBTC fund witnessed a gradual market share decline from 50.5% to 28.6% post the spot Bitcoin ETFs’ launch on Jan. 11, with daily outflows contributing to this trend.

In contrast, BlackRock’s IBIT experienced a notable market share surge, climbing from 22.1% to 37.4% during the same timeframe, positioning itself as a primary beneficiary of the growing acceptance of spot Bitcoin ETFs.

Spot Bitcoin ETFs and market sentiment

Thursday witnessed a distinct trend in net flows, with spot Bitcoin ETFs recording net inflows of $251.4 million post net outflows on Feb. 21. Fidelity’s FBTC led inflows with $158.9 million, trailed by BlackRock’s IBIT with $125.1 million, while Grayscale’s GBTC saw $55.7 million in outflows.

Regarding Bitcoin holdings, the collective Assets Under Management (AUM) of the nine spot Bitcoin ETFs, excluding Grayscale’s converted GBTC fund, are nearing 300,000 BTC, totaling 292,615 BTC, equivalent to approximately $14 billion at current market prices. Conversely, assets held by Grayscale’s GBTC declined by over 25% since Jan. 11, from about 619,000 BTC to 454,660 BTC ($24 billion) as of Thursday.