Bitcoin ETF: $2.4 Billion Traded in One Day!

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.

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

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.