Bitcoin Surpasses $57,000 Mark as Trading Volume of 9 Spot ETFs Achieves Record-Breaking Levels
A significant milestone has been reached in the world of crypto as Bitcoin exchange-traded funds (ETFs) have officially surpassed $2 billion in trading volume. The surge in volume has captured the attention of Eric Balchunas, a senior analyst at Bloomberg Intelligence. On Monday, the ETFs reached an astounding $2.4 billion in volume, double the usual daily average.
The increase in trading volume for Bitcoin ETFs has been accompanied by record-breaking inflows. From January 11 to February 26, 10 spot Bitcoin ETFs, including GBTC, saw a net inflow of $6.03 billion, according to Bitmex Research. The launch day saw the highest inflow at $655.2 million, followed by February 13 with $631.2 million. This surge in ETF volume coincided with Bitcoin’s rise on Monday, surpassing $54,000 for the first time since 2021. Within an hour, Bitcoin hit $57,000 and cleared $70 million in short positions. Currently, Bitcoin is trading at $56,835.
One standout performer among the ETFs is Blackrock’s iShares Bitcoin Trust (IBIT), which contributed $1.3 billion to the total volume. This represents a significant increase of approximately 30% from its previous high and highlights the growing investor interest in Bitcoin within traditional financial markets.
It is important to note that the data does not include Grayscale’s Bitcoin ETF, which recently transitioned from its existing Grayscale Bitcoin Trust (GBTC) to an ETF.
In the midst of this activity, it is clear that there is a growing interest in Bitcoin investment vehicles as investors look for regulated channels to gain exposure to the crypto market.
In addition to the success of Bitcoin ETFs, Bitcoin itself has reached a two-year high, hitting approximately $57,000 during Asian trade. This rise can be attributed to strategic acquisitions and regulatory approvals for spot Bitcoin ETFs, indicating the mainstream adoption of cryptocurrency.
As a result of the success of spot Bitcoin ETFs, there is now a rising demand for spot Ethereum ETFs in the U.S. market. Several investment firms, including BlackRock, Fidelity, Grayscale, VanEck, Invesco, Franklin Templeton, Galaxy, Ark Invests, and 21Shares, have filed applications with the Securities and Exchange Commission (SEC) seeking approval for spot Ethereum ETFs.
Overall, the significant increase in trading volume for Bitcoin ETFs and the rise of Bitcoin itself to a two-year high highlight the growing interest and adoption of cryptocurrencies in mainstream finance.