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The newly launched spot Bitcoin exchange-traded funds (ETFs) have exceeded $50 billion in cumulative trading volume, marking a significant milestone in the world of cryptocurrency investment products. Data put up by BitMEX Research on X captures the six-week trading figures and the performance of major assets.
This milestone comes after regulatory approval was granted by the Securities and Exchange Commission (SEC) to ETFs from prominent players such as BlackRock, Fidelity and Bitwise earlier in January.
Regulatory approval fuels Bitcoin’s growth
The surge in trading volume for spot Bitcoin ETFs reflects growing investor interest and confidence in these regulated investment vehicles. Available data indicates that cumulative trading volume for spot Bitcoin ETFs surged from $28.3 billion at the beginning of the month to $50.5 billion by the end of the trading day on Thursday.
Notably, Tuesday saw a multi-week high trading volume of over $2.5 billion, contributing significantly to the overall increase in cumulative trading volume. On Thursday alone, spot Bitcoin ETF trading volume reached $1.2 billion, with BlackRock's IBIT leading the pack at $457.2 million, followed by Grayscale's GBTC and Fidelity's FBTC at $348.8 million and $255.7 million, respectively.
The competitiveness among spot Bitcoin ETFs is also reflected in market share dynamics. Grayscale's higher fee GBTC fund has seen its market share gradually decline from 50.5% to 28.6% since the launch of spot Bitcoin ETFs on Jan. 11, with daily outflows contributing to this trend.
This contrasts with BlackRock's IBIT, which has experienced a significant increase in market share, growing from 22.1% to 37.4% during the same period, positioning itself as a key beneficiary of the growing acceptance of spot Bitcoin ETFs.
Spot Bitcoin ETFs and market sentiment
Thursday witnessed a unique trend in net flows, with spot Bitcoin ETFs recording net inflows of $251.4 million after experiencing net outflows on Feb. 21. Fidelity's FBTC led the inflows with $158.9 million, followed by BlackRock's IBIT with $125.1 million, while Grayscale's GBTC saw $55.7 million in outflows.
In terms of Bitcoin held, the collective Assets Under Management (AUM) of the nine spot Bitcoin ETFs, excluding Grayscale's converted GBTC fund, are rapidly approaching 300,000 BTC, totaling 292,615 BTC, equivalent to approximately $14 billion based on current market prices. In contrast, assets held by Grayscale's GBTC have declined by over 25% since Jan. 11, from approximately 619,000 BTC to 454,660 BTC ($24 billion) as of Thursday.
Despite recent price fluctuations, with Bitcoin trading at $51,207, down 2% over the past week, the cryptocurrency remains up 26.5% for the month and 21% year-to-date. This is a pointer to the continued bullish sentiment surrounding Bitcoin and its growing adoption in traditional investment channels through spot Bitcoin ETFs, which is predicted to hit a new level in March.
Yuri Molchan
Vladislav Sopov
Gamza Khanzadaev
