Bitcoin ETFs Hit Record Trading Volumes At $10 Billion Amid BTC Price Volatility

The collective assets managed by the ten spot Bitcoin ETFs have exceeded $50 billion amid the BTC price rally.
By Bhushan Akolkar
Bitcoin ETF To Grab $5B AUM From Over 700 Institutional Investors: Bitwise CIO

Highlights

  • BlackRock Bitcoin ETF registers record inflows at $788 million.
  • The combined assets of the ten-spot BTC ETFs have surged past $50 billion.
  • Bitcoin price enters strong volatility amid heavy profit booking by miners.

Bitcoin ETFs continue their market dominance with staggering trading volumes despite the Bitcoin (BTC) price volatility on Tuesday, March 6. On Tuesday, March 5, the total trading volumes across all ten Bitcoin ETFs crossed a staggering $10 billion as the BTC price exhibited massive volatility of $10,000 fluctuating between $69,000 and $59,000.

Ten Bitcoin ETFs Shatter Volume Records

According to Bloomberg ETF strategist Eric Balchunas, the surge in trading activity comes as no surprise, considering the inherent volatility associated with ETFs. However, the magnitude of today’s trading numbers is remarkable, especially for ETFs that are less than two months old.

Several ETFs, including $IBIT, $FBTC, $BITB, and $ARKB, witnessed record-breaking trading days, indicating a growing investor interest in cryptocurrency-based exchange-traded products. In fact, BlackRock’s IBIT Bitcoin ETF clocked its highest-ever daily inflows at a staggering $788 million. Fidelity’s FBTC came second with $125 million in net inflows, as per data from Farside Investors.

Courtesy: Eric Balchunas

ProShares Short Bitcoin Strategy ETF, $BITI, exceeded its previous record by a considerable margin, which is understandable given its status as a short Bitcoin ETF. Balchunas highlighted the potential launch of 2x and -2x spot BTC ETFs, amid strong demand from the traders.

Additionally, $BITO and $BITX both shattered their previous volume records, highlighting the unforeseen impact of the current enthusiasm for spot Bitcoin trading on futures-based ETFs.

The combined assets of the ten-spot BTC ETFs have surged past $50 billion, marking a significant milestone. Just seven weeks ago, these ETFs started with assets under $30 billion. Approximately $8 billion of the total increase is due to inflows, while the remaining growth is a result of the appreciation in Bitcoin’s price value. Eric Balchunas stated that both Bitcoin and ETFs are benefitting from each other.

BTC Profit Booking

While the Bitcoin ETFs continue to hit new milestones, there’s a strong profit booking from long-term Bitcoin holders, especially miners. Tuesday’s turbulent price fluctuations exemplified the unpredictable nature of Bitcoin, characterized by rapid surges and declines.

The optimistic speculations in the derivatives market further fueled the BTC uptrend, where investors could leverage their positions significantly, sometimes up to 100 times, using products like perpetual futures.

However, as Bitcoin’s trajectory shifted, over $800 million worth of bullish positions swiftly faced liquidation in the perpetual futures market, as reported by crypto data tracker Coinglass.

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Bhushan Akolkar
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
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