Bitcoin exchange-traded funds (ETFs) have recently seen a surge in trading activity, marking their busiest session since their launch in January. This increase in trading volume highlights growing investor interest and increased adoption of Bitcoin ETFs.
This surge in trading activity is the result of several factors that influence investor sentiment and market dynamics within the crypto ecosystem. It follows previous milestones, such as the impressive trading volumes seen in the early days of Bitcoin ETF launches.
The recent Bitcoin ETF mania has seen a record influx of investors into the market
Bitcoin (BTC) has seen unprecedented activity since its launch in the United States last month. Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, noted that trading volume reached about $2 billion, the highest level since markets opened on January 11.
The Nine saw the highest volume since day one, with about $2 billion in combined trading, thanks to significant contributions from $HODL , $BTCW , and $BITB , all of which broke personal bests. For context, $2 billion in trading would put them in the top 10 ETFs and top 20 stocks. That’s a huge number.
VanEck’s HODL ETF saw about $400 million in volume, WisdomTree Bitcoin Fund (BTCW) saw $221.9 million in trading, and BitWise saw $178.29 million. According to Balchunas, VanEck’s HODL “has soared today with $258 million in volume already, a 14x increase over its daily average.”
Gold ETFs have seen significant outflows since the launch of ten spot bitcoin ETFs on January 11, with inflows totaling approximately $10 billion into the two largest bitcoin ETFs. However, this does not necessarily mean a direct transfer of funds from gold to bitcoin.
Bitcoin Market Performance and Impact on ETFs
Spot bitcoin exchange-traded funds (ETFs) have seen steady inflows over the past week, outperforming any other exchange-traded product (ETP) among the 3,400 listed in the United States.
According to analysts at Bitfinex, ETFs saw positive net inflows of over $2.2 billion for the second week in a row between February 12 and February 16. These inflows have helped BTC rebound after its brief dip following the release of the Consumer Price Index (CPI).
The bulk of the capital flows have been directed to BlackRock’s IBIT ETF, which has attracted $1.6 billion. This fund alone has seen $5.2 billion in inflows since the start of the year, accounting for more than half of BlackRock’s total net inflows across all of its ETFs.
On the other hand, outflows from Grayscale’s GBTC have continued, with investors withdrawing $624 million last week. Bitfinex reported that outflows from the ETF have surpassed $7 billion since the U.S. Securities and Exchange Commission (SEC) approved its conversion from an over-the-counter commodity to an ETP in January.
At the time of writing, Bitcoin (BTC) is trading at $51,966.33, down 0.2% from an hour ago and up 0.4% from yesterday. BTC is 4.9% higher today than it was seven days ago.
The global crypto market cap is now $2.08 trillion, up 0.81% in the last 24 hours and up 80.13% from a year ago. Currently, BTC has a market cap of $1.02 trillion, representing a dominance of 48.95%. Meanwhile, stablecoins have a market cap of $140 billion, which is 6.71% of the total cryptocurrency market cap.
