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Highlights
- Spot Bitcoin ETF daily flow has topped $6 billion
- BlackRock, Fidelity and Grayscale maintains the lead
- The record comes amid strong Bitcoin and crypto market volatility
The spot Bitcoin ETF market is on the edge, but in a positive way despite the ongoing volatility in the broader digital currency ecosystem.
The Spot Bitcoin ETF Volume Trend
As shared by Bloomberg’s Senior ETF Analyst Eric Balchunas, the 10 spot BTC ETF products recorded over $6 billion in daily volume in what he described as an “intense” trading session.
Providing more context on the shared data as seen below, the Balchunas noted that the overall trading volume exceeded that of American tech giant Microsoft Corporation despite having a couple of hours to go.
As showcased, the BlackRock spot Bitcoin ETF product iShares Bitcoin Trust (IBIT) raked in the bigger share of the overall volume. This was followed by FBTC from Fidelity Investments with Grayscale Investment’s GBTC completing the top 3 highest traded spot Bitcoin ETFs.
Volume for the bitcoin ten is really intense again today, over $6b traded (for context, that's more than $MSFT has traded) with couple hours left to go. Probably going to beat last Wed's record. $IBIT, $FBTC, $GBTC and $BITO are all in Top 15 most active ETFs today. pic.twitter.com/BRRisMkYYd
— Eric Balchunas (@EricBalchunas) March 5, 2024
The trend has remained consistent for close to two months since the investment vehicle gained regulatory approval from the United States Securities and Exchange Commission (SEC). The products set out on a very strong footing, recording over $10 billion in cumulative volume in less than a week after the products were greenlighted.
The offerings have maintained the tempo since then as embrace overheated as the days went by. According to later insights shared by the Bloomberg analyst, the spot Bitcoin ETF market is still largely characterized by the influx of net buyers.
The overall volume on record comes amid the run in Bitcoin’s price to a new All-Time High (ATH) above $69,100. Additionally, it is coming at a time when the market recorded a flash crash that saw more than $680 million liquidated overall. This spot Bitcoin ETF volume which is the second highest since inception underscores the overall strength of the market irrespective of the current outlook.
The Grayscale Magic
Among the spot Bitcoin ETF issuers, Grayscale has largely maintained an enigmatic posture compared to the rest of the players in the space. While it has recorded a significant outflow worth over $10 billion since its inception, the Grayscale GBTC has managed to hold more assets now than it did since it started.
Eric Balchunas said in a statement quoted by market commentator Nate Geraci that this phenomenon is dubbed “Bull-Market Subsidy.” Balchunas went on to further label this trend a “magic,” in acknowledgment of the dominance that Grayscale still wields over its peers.
Thus far, Grayscale has refused to change its high sponsor fee, underscoring its confidence to compete based on legacy, a disposition that is arguably paying off for it at the moment.
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