The enthusiasm for Bitcoin-related ETFs was further underscored by data indicating that US-listed spot Bitcoin ETFs collectively traded over $2 billion.
BlackRock Inc’s (NYSE: BLK) iShares Bitcoin Trust (IBIT) continues to make waves in the financial space, marking its second consecutive day of impressive trading volume.
On Tuesday, the ETF recorded over $1.3 billion in daily trading volume, following Monday’s record-breaking performance. This surge in activity comes as Bitcoin (BTC) rallies to $57,000, reflecting renewed investor interest in the crypto market.
BlackRock’s IBIT Unprecedented Trading Activity
Eric Balchunas, an ETF analyst at Bloomberg Intelligence, highlighted the remarkable performance of IBIT, noting that it recorded $1.357 billion in trading volume on Tuesday, surpassing Monday’s already impressive figure of $1.3 billion.
Another intense volume day for the Nine with well over $2b traded. $IBIT broke its personal record again w/ $1.3b (for context that's more than most large cap US stocks trade). I don't know if this is a new normal or some kind of short-term algo/arb-related burst a la $HODL. pic.twitter.com/KkCkdQKe9r
— Eric Balchunas (@EricBalchunas) February 27, 2024
The enthusiasm for Bitcoin-related ETFs was further underscored by data indicating that US-listed spot Bitcoin ETFs collectively traded over $2 billion. Although this figure slightly fell short of Monday’s record-breaking daily volume of $2.4 billion, it nonetheless indicates a robust interest in these investment vehicles.
Also, Nasdaq data revealed that nearly 42 million shares changed hands, more than double the average since IBIT began trading in January. This surge in trading activity catapulted IBIT to the position of the fifth most-traded among all US-listed ETFs during the morning hours, as highlighted by pseudonymous commentator HODL15Capital. Notably, Fidelity’s Bitcoin ETF (FBTC) also experienced strong trading volume, further indicating a broad-based interest in Bitcoin-related investment products.
While high trading volume often suggests positive market sentiment, it’s crucial to note that this metric reflects both buy and sell orders. Nonetheless, Monday’s elevated volume was notably characterized by heavy inflows into Bitcoin ETFs. BitMex Research reported approximately $520 million in net inflows, with minor outflows observed from Grayscale’s incumbent GBTC.
[1/3] Bitcoin ETF Flow – 26th Feb 2024
All data in. Strong day with $520m net inflow
Total net inflow since 11th Jan is $6,030m. pic.twitter.com/Iz4khAzEev
— BitMEX Research (@BitMEXResearch) February 27, 2024
Fidelity led the pack in terms of inflows, attracting roughly $243 million, followed by Ark and 21Shares’ ARKB, which garnered $130 million. IBIT secured the third position with $111 million in inflows, a figure that, while substantial, was relatively modest for BlackRock’s fund compared to its average since its debut.
The Parabolic Bitcoin Market Rally
The surge in trading volumes coincided with Bitcoin’s breakout from its sideways consolidation on Monday, rallying over 10% and reaching $57,000 after the US market closed. At the time of writing, Bitcoin is trading at $57,402, marking a 2% increase in the past 24 hours, with trading volumes exceeding $38 billion.
Renowned analyst Peter Brandt has made an intriguing prediction for Bitcoin’s future, suggesting that based on market movements over 15 months, Bitcoin could soar to $200,000 by next year, up from his previous estimate of $120,000. This bullish sentiment is echoed by many analysts, who foresee continued upward momentum for Bitcoin in the coming months.
Overall, the confluence of factors, including ETF and the upcoming halving scheduled for April, sets the stage for a bullish outlook on Bitcoin. Beyond artificial scarcity, the influx of new market entrants has the potential to reshape the crypto space, fostering greater mainstream acceptance and adoption.
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