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BlackRock Spot Bitcoin ETF Sets New Trading Record

Last Updated February 28, 2024 10:37 AM
James Morales
Last Updated February 28, 2024 10:37 AM
By James Morales
Verified by Peter Henn

Key Takeaways

  • Bullish conditions in the BTC market have fueled surging trade volumes for spot Bitcoin ETFs.
  • Leading the pack, Blackrock’s IBIT recorded trades worth over $1 billion for two consecutive days on Monday and Tuesday.
  • Following an influx of capital and a strong Bitcoin  rally, the  most actively traded fund now holds assets worth $43.16 billion.

Since spot Bitcoin exchange-traded funds (ETFs) got the green light from the United States Securities and Exchange Commission (SEC) in January, the total net asset value (NAV) of 10 SEC-approved funds has risen to $43.16 billion.

Of these, the most traded fund is Blackrock’s iShares Bitcoin ETF (IBIT), which set an all-time high record for daily trading volume on Tuesday, February 27, SoSo Value data  shows.

BlackRock Bitcoin ETF Tops $1 Billion Trade Volume for Second Day

Tuesday’s record marked the second day in a row that more than a billion dollars worth of IBIT shares were traded on the Nasdaq. 

Fueled by Bitcoin’s market rally, which saw the cryptocurrency’s value surge by over 10% in 24 hours, 41.64 million IBIT shares worth $1.37 billion exchanged hands during trading hours.

IBIT daily trade volume
IBIT daily trade volume.

Having registered positive net inflows every day since its launch, IBIT’s cumulative inflows have now risen to $6.54 billion. Together, the surging price of BTC and the influx of fresh capital to IBIT have boosted the ETF’s NAV above $8 billion for the first time.

IBIT Emerges as the Traders’ Favorite

Since overtaking Grayscale’s GBTC in daily trading volume at the end of January, Blackrock’s ETF has extended its lead as the most actively traded Bitcoin fund. On Tuesday, for instance, IBIT’s trading volume surpassed that of GBTC by nearly $570 million.

For now, GBTC retains second place, registering over $800 million in daily trade volume on Monday and Tuesday. However, Fidelity’s FBTC has also demonstrated its potential to drive hundreds of millions of dollars worth of trades in a single day.

Fidelity Also Looking Strong

Like BlackRock and Grayscale’s funds, FBTC trading has surged in line with the rising price of Bitcoin. 

Recording volumes of over 578 million for two consecutive days, FBTC’s recent trading activity still fell short of its debut, when the ETF clocked over $700 million worth of trades. Nonetheless, investors have demonstrated a strong interest in the fund, which has seen its NAV increase steadily since January even when the BTC market was down. At the close of trading on Tuesday, FBTC held assets worth nearly $5.7 billion dollars, representing more than 0.5% of Bitcoin’s total market capitalization.

Bitcoin ETF Total Assets Surpass $43 Billion

After the latest crypto rally, the 10 spot Bitcoin ETFs closed trading on Tuesday with a collective NAV of $43.16 billion. In total, the value of assets held by ETFs stood at 0.039% of Bitcoin’s $1.12 trillion market cap.

Asset managers now represent some of the largest Bitcoin holders in existence and Grayscale is no longer the only player in the game.

Following the initial flight of capital from GBTC, Grayscale’s ETF outflows have slowed significantly since their late-January peak.

For now, IBIT has cemented its lead as the most actively traded Bitcoin ETF. But GBTC remains the single largest fund and shouldn’t be written off too early.

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