Spot Bitcoin ETFs hit a record $2.4B in daily trading volume, with BlackRock's IBIT leading at $1.29B. A clear signal of growing institutional interest!
— Nardo Bardo (@Nardobardo1) February 27, 2024
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Bitcoin ETF: $2.4 Billion Traded in One Day!
Wed 28 Feb 2024 ▪
3
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Getting informed
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Bitcoin (BTC) isn’t the only one drawing attention within the crypto community. Several spot-backed Bitcoin ETFs are part of this dynamic through their trading volumes. In 24 hours, they have made a remarkable breakthrough. Here’s what exactly happened.
Spot Bitcoin ETF Trading Volumes Hit $2.4 Billion
The day of Monday, February 26, was special for spot Bitcoin ETFs. Indeed, they recorded an unprecedented increase in their trading volumes which reached $2.4 billion within 24 hours.
This increase has established a new standard for the crypto market. And the fact that such a rise in ETF trading volumes occurred mid-week almost constitutes a coherent pattern. Even though the exact catalyst for this trend is difficult to pinpoint.
Nonetheless, some believe that bitcoin’s recent momentum could have played a role in the surge in ETF trading volumes. They suggest that the flagship crypto’s rally could have prompted investors to turn to ETFs as an accessible investment vehicle.
What is certain is that nine of the eleven Spot Bitcoin ETFs approved by the SEC in January are experiencing record trading volumes. But among them, BlackRock’s ETF takes the lion’s share.
ETFs Affected by the Trend
It should be noted that among the spot Bitcoin ETFs affected by the surge in volumes, BlackRock’s iShares Bitcoin ETF stands out particularly. It alone represents $1.3 billion, or 55% of the total trading volumes.
The remaining 45% are shared among the other eight Spot Bitcoin ETFs. These include those from Fidelity, Franklin Templeton, Invesco, VanEck, WisdomTree, Hashdex, Bitwise, and Valkyrie. They collectively represent a trading volume of $2.4 billion.
Fundamentally, this surge indicates an increasing enthusiasm amongst traditional investors for crypto-related investments. After all, ETFs offer a regulated and simplified approach to this type of investment.
The option is particularly attractive for those concerned about the risks associated with direct investments in cryptos like bitcoin. These risks are not about to disappear. That said, and knowing that the hype around the flagship crypto is expected to continue, it is not far-fetched to assume that ETFs may gain even more popularity.
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Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.