March Sets Record Breaking Volume for Bitcoin Spot ETFs with $111B Trading Volume

Exciting news in the world of spot bitcoin Exchange-Traded Funds (ETFs) for the month of March! Trading volume soared to an impressive $111 billion, nearly tripling the numbers from February. This surge in interest highlights the growing popularity of these innovative financial tools in the digital asset realm.

A notable figure in the ETF space, Eric Balchunas, took to social media platform X to share his thoughts on March’s trading volume, dubbing it “March Madness.” Surpassing the combined volume of January and February, this uptick is a significant development.

Despite these remarkable numbers, Balchunas remains cautious about making predictions, suggesting that April’s figures might not surpass those of March.

Bitcoin ETFs trading volume — Source

Recent trends show a slight decline in spot Bitcoin ETFs’ popularity, with daily trading volume dropping to $5.4 billion, a 36% decrease from its peak in early March. Positive net inflows into bitcoin investment products were overshadowed by outflows from GBTC, affecting bitcoin prices and leading to a $5,000 correction, putting the price at around $65,000.

GBTC Outflows in March

Despite the success of spot bitcoin ETFs overall, Grayscale’s GBTC fund faced some challenges. Since its launch in January, GBTC has seen total outflows exceeding $15 billion, signaling significant selling pressure. The selling intensified in March following news of a potential sale of 35.9 million GBTC shares valued at around $2 billion.

Analysts noted fluctuations in GBTC’s outflows, with a drop from $642.5 million on March 18 to $104.9 million on March 28, hinting at a possible slowdown in selling pressure. However, recent data revealed a resurgence, with outflows surpassing daily averages, hitting $302.6 million.

These outflows have contributed to a 46% decrease in GBTC’s bitcoin holdings since January.

Bitcoin Spot ETFs: Market Leaders

BlackRock’s IBIT and Fidelity’s FBTC emerged as leaders in bitcoin holdings among spot bitcoin ETFs, amassing over $27 billion in BTC collectively. Despite Grayscale’s challenges, BlackRock and Fidelity continue to attract significant inflows, with assets under management hitting about $18 billion and $10 billion, respectively.

Recent data from James Seyffart shows IBIT taking over the volume market share from GBTC. Balchunas remarks on this, calling IBIT the GLD of bitcoin, a significant achievement.

Bitcoin Price Trends

The recent correction resulted in nearly $500 million in liquidations and a surge in bearish sentiment in the options market. Spot bitcoin ETFs returned to net outflows after a week of inflows, with Monday’s outflows totaling $85.7 million, primarily driven by Grayscale’s fund shedding $302.6 million.

With the Bitcoin halving event approaching on April 20, investors are keeping a close eye on the market’s evolving landscape and uncertainties surrounding spot bitcoin ETFs.


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