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.
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.
Big moment for bitcoin but I'd argue just as big a moment for ETFs. Move from 25k to 69k was all or close to all due to ETF approval hopes and/or flows (as per Isabelle's chart) and arguably warranted IMO, ETFs (and its ecosystem) so damn good at taking something and making it… https://t.co/sfDDUudAtF
— Eric Balchunas (@EricBalchunas) March 5, 2024
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.
- Ethena Labs Secures Fresh Funding From ArkStream Capital, ENA Price Spikes
- SEC Forms International Task Force to Crack Down on Pump-and-Dump Schemes
- Justin Sun Pledges $20M Buy Following WLFI Wallet Freeze
- Expert Blames ‘Secret Committee’ for Rejecting MSTR Stock Inclusion to S&P 500
- MARA Bitcoin Treasury Nears $6 Billion, Trails Only Strategy in Public Rankings
- Chainlink Price Eyes $55 as Reserve Holdings Jump With 43,937 LINK Addition
- Cardano Price Targets 30% Surge as Top Economist Calls for Fed Cut
- ETH Price Forecast as Grayscale’s Covered Call Ethereum ETF Spurs Optimism — Is $8,500 in Sight?
- Bitcoin Price Prediction as SEC Unveils Agenda for Crypto Regulation — Is $200K Next?
- ONDO Price Prediction Amid Bitget Collaboration on Tokenized Stocks and ETFs: Is $2 Next?