Buying and selling quantity in spot Bitcoin exchange-traded funds (ETFs) soared to a report $111 billion in March, practically 3 times the $42 billion in February.
The U.S. spot Bitcoin ETF, which acquired SEC approval earlier this yr, rapidly attracted traders’ consideration. Final month’s gross sales exceeded even essentially the most optimistic expectations.
new: #bitcoin ETF buying and selling quantity reached a report $111 billion in March.
That’s 3 times February’s inflows 🤯 pic.twitter.com/Ol1PaS8vC9— Bitcoin Journal (@BitcoinMagazine) April 3, 2024
Bloomberg ETF analyst Eric Balchunas mentioned buying and selling quantity in March was about 3 times that of February and January. The sharp rise means that spot Bitcoin ETFs are assembly sturdy demand from institutional and retail traders.
“I am unable to think about will probably be larger in April, however who is aware of,” he mentioned.
BlackRock’s Bitcoin ETF (IBIT) leads the way in which, accounting for 50% of whole buying and selling quantity. Grayscale’s GBTC is in second place with a 20% share, adopted by Constancy’s FBTC with a 17% share.
Balchunas declared IBIT the “GLD USD of Bitcoin,” referring to the large SPDR gold ETF. He mentioned the victory in March made IBIT the undisputed chief amongst Bitcoin ETFs.
The surge in buying and selling exercise coincides with Bitcoin’s climb to a brand new all-time excessive in March. Nonetheless, it additionally exhibits that spot ETFs are altering market dynamics and driving new demand.
Critics initially thought the Bitcoin market would ignore these new merchandise. Nonetheless, inflows into funds resembling IBIT and FBTC have been extraordinarily optimistic.
Demand far exceeds the Bitcoin mined. ETFs bought roughly 66,000 BTC in March, whereas miners solely produced 28,500. This provide and demand imbalance seems to be set to accentuate as extra traders acquire publicity via ETFs and newly mined Bitcoins are reduce in half in two weeks throughout the Bitcoin halving occasion.
With sturdy inflows, belongings below administration and buying and selling exercise, these new regulated devices have established themselves within the Bitcoin market. If March is any indication, their rise is simply starting.
