In a recent update, it has been reported that the newly launched spot Bitcoin exchange-traded funds (ETFs) have seen another day of impressive trading volumes, surpassing $2 billion for the second consecutive day. This surge in demand and interest has caught the attention of industry experts.
Bloomberg ETF analyst Eric Balchunas commented on the situation, referring to it as “another intense volume day for the Nine” – referring to the new ETFs excluding the Grayscale Bitcoin Trust (GBTC), which has been converted from a trust. Balchunas noted that BlackRock’s ETF broke a new record with a daily volume of $1.3 billion, surpassing the trading volumes of many large-cap stocks in the United States.
Balchunas expressed uncertainty about whether this surge in trading volumes is a new normal or a short-term burst related to algorithms or arbitrage strategies.
BlackRock’s iShares Bitcoin Trust ETF (IBIT) experienced a significant increase in individual trades on February 27, with over 100,000 trades compared to the previous average of 30,000 to 60,000 trades per day, according to Balchunas.
Among the other newly launched ETFs, the Fidelity Wise Origin Bitcoin Fund (FBTC) reached a daily volume of $578 million, while the ARK 21Shares Bitcoin ETF (ARKB) ranked third in terms of trade volume with $204 million.
This marks the second consecutive day that these nine new ETFs have surpassed $2 billion in daily trading volume since their launch on January 11. On February 26, the trading volumes for these ETFs reached $2.4 billion, surpassing the previous record of $2.2 billion set on their first trading day.
It’s worth noting that the trading volumes mentioned do not include the volume from GBTC. Preliminary data from Farside Investors shows that GBTC saw an outflow of $22.4 million on February 26 and $125.6 million on February 27.
Nate Geraci, the President of ETF Store, shared a chart on February 28 that illustrates the decreasing share of Grayscale’s ETF volume compared to the other ETFs.
According to Farside’s preliminary flow data, the combined net inflow for these ETFs on February 27 was $574 million, surpassing the $520 million from the previous day, despite a larger outflow from Grayscale. BlackRock’s IBIT saw $520 million in net inflows, while Fidelity’s FBTC had $126 million. Bitwise’s fund ranked third with $18.3 million of inflows.
Overall, the surge in trading volumes for these newly launched Bitcoin ETFs highlights the growing interest and demand for cryptocurrency investments.