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Bitcoin ETFs Trading Volume Tops $5.9 Billion as BTC Approaches Record

Last Updated March 5, 2024 11:25 AM
James Morales
Last Updated March 5, 2024 11:25 AM
By James Morales
Verified by Peter Henn

Key Takeaways

  • Bitcoin ETFs had their second-most active trading day on Monday.
  • Twice during the last week, the total daily trade volume for 10 spot bitcoin ETFs surpassed $5 billion.
  • With net inflows totaling nearly $2.3 billion in the last week, the value of BTC held by ETFs now stands at over $52 billion.

The past eight days witnessed the price of Bitcoin climb from $51,000 to $68,700. With the cryptocurrency closing in on an all-time high, set in November 2021, one crucial factor distinguishes the current bull market from previous cycles: the existence of regulated spot Bitcoin Exchange-Traded Funds (ETFs).

Collectively, the 10 Bitcoin ETFs had their most active day on Wednesday, February 28. It was then that $7.74 billion worth of shares were traded. With Bitcoin registering similarly impressive price gains on Monday, ETF trading surged yet again, topping $5.9 billion according  to SoSoValue.

ETF Daily Trade Volumes Surge

With the exception of their first two days of trading, throughout most of January and February, Bitcoin ETF trade volumes rarely climbed much higher than $2 billion dollars a day.

In the last eight days, however, volumes have surged in line with a major Bitcoin rally.

For five consecutive trading days, Bitcoin ETF trade volumes have topped $3 billion dollars. Not only that, but the 2 most active trading days for Bitcoin ETFs both happened in the past week.

In terms of net inflows, the 10 US-listed bitcoin funds have attracted a net total of nearly $2.3 billion in the last week alone. This has helped boost their collective market capitalization above $50 billion.

Total Asset Value Surpasses $52 Billion 

The combined effect of ETF inflows and recent BTC price action has seen the net asset value (NAV) of all spot Bitcoin ETFs climb to $52.45 billion at the close of trading on Monday.

To put that in perspective, the combined market cap of the top 10 Gold ETFs currently stands at $92.47 billion. Considering Gold-based ETFs have a ten-year headstart, some analysts anticipate them being overtaken by the new Bitcoin funds in the next two years. 

Compared to funds that launched in January, Grayscale’s GBTC remains the largest ETF with a NAV of $28.12 billion. However, BlackRock’s IBIT has closed the gap considerably and now holds Bitcoin worth $11.53 billion.

Although GBTC outflows have slowed since an initial exodus of capital upon its conversion to an ETF, money continues to drain out of Grayscale’s fund with much of it potentially redirected toward cheaper alternatives.

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