In a significant milestone for spot Bitcoin exchange-traded funds (ETFs), BlackRock’s spot Bitcoin ETF has recorded over $1 billion in trades today alone, according to Bloomberg Senior ETF Analyst Eric Balchunas. This achievement highlights the growing demand for Bitcoin investments products, and the acceptance of Bitcoin in traditional finance.
MILESTONE $IBIT It has already traded $1b in shares, which places it 11th out of all ETFs. This is a huge number for a new ETF, especially one with ten competitors. $1b/day volume is enough to attract (even large) institutions. pic.twitter.com/1vxW5jhaXT
— Eric Balchunas (@EricBalchunas) February 26, 2024
BlackRock, a global asset manager, launched the spot Bitcoin ETF in early this year. It allows investors to gain exposure to BTC, without having direct ownership. The ETF’s ability to attract substantial trading volume on a single-day reflects the appetite of investors for Bitcoin as an asset class.
The $1 billion in trading volume indicates a strong investor interest for Bitcoin amid the ongoing volatility of the market and economic uncertainty. Bitcoin is a popular investment choice for institutional and retail investors who are looking to diversify their portfolios and find alternative ways of storing value.
“Insane number for newbie ETF (esp one w ten competitors),” commented Balchunas. “$1b/day is big boy level volume, enough for (even big) institutional consideration.”
Forgot to say that $1b today (sofar), is a personal best for $IBIT. Note that volume is not the same as flows. However, it’s just as important in terms of long-term. Liquidity reduces friction, costs and increases anonymity. This is why institutions only tend to use ETFs with high volumes.
— Eric Balchunas (@EricBalchunas) February 26, 2024
The ETF reaching the $1 Billion trading milestone is a confirmation of mainstream acceptance for Bitcoin as an investment asset. As spot Bitcoin ETFs grow, it’s expected that they will play a major role in helping to bridge the gap between traditional finance methods and Bitcoin exposure.
Bitcoin’s price began to rise sharply as soon as the markets opened on Monday. It reached highs that have not been seen since December 20,21.
U.S. Monday market open. $BTC bid. pic.twitter.com/SQGXR69weX
— Dylan LeClair 🟠 (@DylanLeClair_) February 26, 2024
“This article is not financial advice.”
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Source: bitcoinmagazine.com