As Bitcoin notched over 10% daily gains, the trading volume of nine BTC ETFs reached a record high.
“New Nine” recently launched spot Bitcoin exchange-traded funds (ETFs), except for Grayscale’s GBTC, experienced a daily trading volume of $2.4 billion. This marked a new peak and nearly twice the usual daily volume, as per analysis by Eric Balchunas from Bloomberg.
- BlackRock IBIT’s trading activity surged to $1.3 billion, approximately 30% more than its previous highest level.
- Meanwhile, the ARK 21Shares (ARKB) and Bitwise (BITB) ETFs witnessed inflows of $276 million and $81 million, respectively.
- Bitcoin surged past $57,000 on Tuesday, reaching its highest price since November 2021, breaking free from its recent period of sideways movement as the rally unexpectedly resumed. Over the past month, the leading crypto asset has gained over 35%.
- Trading volumes also surged in several of these funds this week, while companies associated with crypto assets also saw a rally, contrasting with the cautious sentiment prevailing in the broader market.
- In fact, Monday marked the second-largest trading day, reaching $3.2 billion in total volume when considering flows from Grayscale’s Bitcoin ETF.
- Earlier in the trading session, IBIT crossed the $1 billion threshold, thereby positioning itself as the 11th-highest volume among all ETFs.
- While spot Bitcoin ETFs have performed impressively, the same cannot be said for gold ETFs.
- Such financial products have witnessed net outflows totaling $3.6 billion since January 11.
- Balchunas indicated that only a small proportion of these funds probably moved directly into the new spot Bitcoin ETFs, but he posits that the mere presence of these investment vehicles is likely creating competition for precious metals in general.