BlackRock’s Spot Bitcoin ETF Hits Record $1.3B Daily Trading Volume for 2nd Day Straight

In a testament to the growing interest in crypto investments, BlackRock’s spot Bitcoin exchange-traded fund (ETF) experienced yet another remarkable trading day, surpassing $1.3 billion in daily trading volume for the second consecutive day. The surge in activity was fueled by the recent rally in bitcoin prices, reaching $57,000.

BlackRock’s IBIT, the spot Bitcoin ETF in focus, recorded an impressive $1.357 billion in daily trading volume on Tuesday, building on the previous day’s record of $1.3 billion. Nasdaq data revealed that nearly 42 million shares were exchanged, doubling the average since its launch in January. Notably, IBIT secured its position as the fifth most-traded among all U.S.-listed ETFs during the morning hours.

The US-listed spot Bitcoin ETFs collectively traded over $2 billion on the mentioned day, although this figure fell slightly short of Monday’s record-breaking daily volume of $2.4 billion. The heightened trading activity coincided with a significant breakout in Bitcoin price, surging over 10% to $57,000 after the US market close. This marked the highest price level for Bitcoin since November 2021.

Another intense volume day for the Nine with well over $2b traded. $IBIT broke its personal record again w/ $1.3b (for context that’s more than most large cap US stocks trade). I don’t know if this is a new normal or some kind of short-term algo/arb-related burst a la $HODL. pic.twitter.com/KkCkdQKe9r

— Eric Balchunas (@EricBalchunas) February 27, 2024

While impressive trading volumes often indicate positive interest, it’s essential to consider both buy and sell orders. Monday’s substantial volume was accompanied by substantial net inflows, with US-listed spot Bitcoin ETFs receiving $520 million. Notably, Grayscale’s incumbent GBTC experienced minor outflows during this period.

Fidelity emerged as the leader in attracting funds, securing approximately $243 million in net inflows. Ark’s ARKB and BlackRock’s IBIT followed suit, with $130 million and $111 million in inflows, respectively. It’s noteworthy that despite being the third in terms of inflows, IBIT’s figure is relatively low compared to its average inflows since its debut.

The remarkable trading volumes align with the broader market sentiment as Bitcoin exhibited a breakout from its sideways consolidation on Monday, experiencing a notable 10% rally to $57,000. As of the past 24 hours, Bitcoin has sustained a 6% increase, outperforming the CoinDesk20 Index’s (CD20) 3.5% advance.

BlackRock’s IBIT continues to make waves in crypto trading, showcasing robust daily trading volumes amidst the ongoing Bitcoin rally. The consecutive record-breaking days highlight the increasing adoption of crypto ETFs and suggest a heightened interest from institutional and retail investors alike. As the crypto market continues to evolve, the performance of major players like BlackRock will undoubtedly shape the narrative of digital asset investments in the financial landscape.

Source: CoinDesk