Spot Bitcoin exchange-traded funds (ETFs) experienced a significant surge in trading volume during the month of March, reaching a total of $111 billion. This represents nearly triple the trading volume recorded in February, with Grayscale and BlackRock ETFs dominating the market.
According to Bloomberg ETF analyst Eric Balchunas, the trading volume for spot Bitcoin ETFs in March was $111 billion, compared to $42.2 billion in February. It is important to note that February marked the first full month of trading for Bitcoin investment products, which made their market debut on January 11. Therefore, the strong performance in March indicates a growing interest in spot Bitcoin ETFs.
BlackRock’s Bitcoin ETF, IBIT, continues to maintain its dominance in terms of trading volume, followed by Grayscale’s GBTC and Fidelity’s FBTC. Balchunas highlighted this in a subsequent post, sharing a chart by fellow analyst James Seyffart that shows IBIT’s increasing market share, surpassing GBTC.
On April 1, the cumulative spot Bitcoin ETFs recorded net outflows of $86 million, according to data from Farside Investors. Although BlackRock’s IBIT ETF had inflows of $165.9 million, it was overshadowed by Grayscale’s outflows of $302.6 million. Fidelity’s FBTC had the second highest inflows of $44 million on April 1, while ARK Invest 21Shares ETF ARKB experienced its first outflows of $300,000 since trading began on January 11.
BlackRock and Fidelity’s spot Bitcoin ETFs reached approximately $18 billion and $10 billion, respectively, in assets under management last month and have been the most successful in terms of inflows. On the other hand, Grayscale’s GBTC has seen total outflows surpass $15 billion, with over $300 million in outflows recorded on April 1. According to data from Coinglass, GBTC’s assets under management have now decreased by 46% to $22 million.
Spot Bitcoin ETFs have significantly impacted the BTC markets, leading to new all-time highs in March. Market participants anticipate a different cycle that combines the success of the ETFs with the upcoming Bitcoin supply halving, which is now less than 20 days away.
Please note that this article does not provide investment advice or recommendations. Every investment and trading decision carries risks, and readers should conduct their own research before making any decisions.