Bitcoin ETF trading volumes reach staggering heights

Bitcoin exchange-traded funds (ETFs) continue to surge in popularity, with trading volumes hitting unprecedented levels for the second consecutive day. Analysts are witnessing a genuine demand for these investment vehicles, as evidenced by the staggering $2 billion combined daily trading volume on Feb. 27.

Record-breaking performance

BlackRock’s iShares Bitcoin Trust ETF (IBIT) stole the spotlight, setting a new record with a daily trading volume of $1.3 billion. This figure surpasses the average daily trades of most large-cap United States stocks, showcasing investors’ immense interest in cryptocurrency investment.

Nine recently launched Bitcoin ETFs, excluding the converted Grayscale Bitcoin Trust (GBTC), have been at the forefront of this trading frenzy. Bloomberg ETF analyst Eric Balchunas described the trading activity as “another intense volume day for the Nine,” underlining the sustained interest and demand in these innovative investment products.

Variety in trading volume

Among the notable performers, the Fidelity Wise Origin Bitcoin Fund (FBTC) recorded a substantial daily volume of $578 million, while the ARK 21Shares Bitcoin ETF (ARKB) trailed closely behind at $204 million. This diverse range of ETFs caters to different investor preferences and risk appetites, contributing to the overall vibrancy of the market.

Since their launch on Jan. 11, these nine Bitcoin ETFs have consistently surpassed expectations, with trading volumes exceeding $2 billion for two consecutive days. On Feb. 26, trading volumes reached an impressive $2.4 billion, surpassing the previous record set on their debut trading day.

Notably, the reported figures exclude trading volume from the Grayscale Bitcoin Trust (GBTC). Despite GBTC’s established presence in the cryptocurrency investment landscape, investors are increasingly turning to the newly introduced ETFs, which is evident from the outflows witnessed in GBTC on Feb. 26 and Feb. 27.

Positive net inflows

Despite the outflows from GBTC, the combined net inflow for the ETFs stood at a substantial $574 million on Feb. 27. This figure marks an increase from the previous day’s inflow of $520 million, signaling growing investor confidence and enthusiasm in the cryptocurrency market.

BlackRock’s IBIT, with $520 million, led the pack in net inflows, and Fidelity’s FBTC with $126 million. Bitwise’s fund also garnered significant attention, recording $18.3 million in inflows. These robust inflow figures underscore the increasing adoption of Bitcoin ETFs as a preferred investment choice among investors.