Bitcoin ETFs See Explosive $111 Billion Trading Volume in March

Key Takeaways

• Bitcoin ETFs witnessed $111 billion in trading volume in March, nearly tripling since January debut.
• The surge is attributed to investor interest in new ETF issuers.
• GBTC experienced significant outflows but will April be better?

Investor activity revealed by trading volume surged for Bitcoin Exchange-Traded Funds (ETFs) in March. According to Bloomberg Intelligence, BTC ETFs clocked in $111 billion in trading volume during March, marking a major spike since their January debut. In the wake of new ETF issuers entering the US market, can April’s bets be higher?

Bitcoin ETF Trading Volume

According to Bloomberg analysts, March’s trading volume in Bitcoin ETFs was nearly three times the amount seen in January and February. The trading volume for March comes at $111 billion after more than $40 billion in February and close to $35 billion in January. GBTC contributed to most of the trading in January as IBIT gained ground in February. In March, BlackRock surpassed Grayscale as the largest ETF in terms of trading.

Notably, since the January debut, Grayscale Bitcoin Trust (GBTC) outflows have haunted the market but Blackrock’s IBIT picked up on the volumes.

According to a detailed breakdown  of Bitcoin ETF flows on April 2, 2024, the total net flow stood at $40.3 million. IBIT led the charge with a $150.5 million inflow. Conversely, the ARK 21Shares Bitcoin ETF (ARKB) faced the largest outflow at $87.5 million, surpassing even GBTC’s $81.9 million outflow. According to analysts , while slowing GBTC outflows is good news, Ark’s first major outflows are not encouraging.

ETF Inflows See Weekly Recovery

CoinShares’ recent Digital Asset Fund Flows Weekly Report claims that inflows are surging but trading activity has taken a hit.

While the March performance was encouraging, CoinShares notes: “ETF activity is slowing down, with daily trading turnover now at US$5.4 billion, down 36% relative to its peak three weeks ago.”

The report’s analysis says that there is renewed investor interest in new ETF issuers after a week of major outflows. In the week ending March 29, the total inflow ended at $1.8 billion with Bitcoin at totalling at $865 million. The figures represent a recovery from the previous week’s $931 million outflows.

Meanwhile, Bitcoin price recovered after a dip under the crucial psychological level of $65,000. At press time, BTC is inching towards $67,000 despite being down on the weekly charts.

Will April be Positive for Bitcoin ETFs?

After March’s record-breaking trading volume, Bitcoin ETFs could see another record in April. The maturing investor base, the growing institutional integration, and slowing outflows from GBTC can paint the broader trends in the space. Bitcoin price trajectory in April is another focus that will decide the ETF activity.

About the Author

Shraddha Sharma

Shraddha has around five years of experience as a financial journalist, focusing largely on the Asian markets. Starting her career in Mumbai, India, as a news trainee and producer, she quickly found her niche in crypto. She is keen on learning how emerging technologies affect the broader markets and enjoys explaining complex financial ideas in a way that's easy to understand.

See more

[email protected]