The trading volume of spot bitcoin exchange traded funds (ETFs), which are based on the Bitcoin currency, reached a new record high in March. This is nearly three times higher than that in February.
US spot Bitcoin ETFs were first approved earlier this summer by the SEC. They have quickly gained popularity among investors. The volumes of these ETFs last month were higher than even optimistic predictions.
NEW: #Bitcoin In March, ETFs had a volume record of $111 BILLION.
That's TRIPLE the inflows from February 🤯 pic.twitter.com/Ol1PaS8vC9
— Bitcoin Magazine (@BitcoinMagazine) April 3, 2024
Bloomberg ETF analyst Eric BalchunasThe trading volume in March was about triple what it had been for February and January. The huge rise in trading volume indicates institutional and retail demand for spot bitcoin-based ETFs.
“He said” “I can’t imagine April will be bigger, but who knows.”
BlackRock’s Bitcoin ETF, IBIT, led with 50% of total volume. Grayscale’s GBTC came in second with 20% and Fidelity FBTC was third at 17%.
Balchunas declared IBIT the “$GLD of bitcoin,” He was referring to SPDR Gold, a massive ETF. IBIT, according to him, is the clear leader of bitcoin ETFs.
Bitcoin reached new record highs for trading in March. It also indicates that spot ETFs have changed the market dynamics, driving demand.
Critics claimed that the bitcoin market would reject new products. Yet, flows to funds such as IBIT and FBTC are overwhelmingly positive.
Bitcoin demand is far exceeding bitcoin mining. ETFs purchased around 66,000 BTC during March while only 28,500 were produced by miners. The supply-demand gap is expected to increase as investors gain exposure via ETFs, and the newly produced coins are cut by half within two weeks. bitcoin halving event.
The new regulated Bitcoin instruments are firmly entrenched in the Bitcoin market. They have strong assets, trading activity and strong inflows. Their rise may only be just starting if March is any indication.
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Source: bitcoinmagazine.com