Spot Bitcoin ETFs Achieve Record-Breaking $7.69 Billion in Trading Volume

Spot Bitcoin ETFs have reached a new milestone with an astonishing $7.69 billion in trading volumes on February 28. Leading ETFs such as BlackRock’s IBIT, Grayscale’s GBTC, and Fidelity’s FBTC contributed significantly to this surge.

The surge in trading volume has been fueled by the overwhelming demand for the recently approved spot Bitcoin ETFs. The US spot Bitcoin ETFs witnessed an extraordinary $7.69 billion in trading volume on Wednesday, surpassing the previous day’s volume by almost two-fold.

BlackRock’s iShares Bitcoin Trust (IBIT) led the pack with over $3.3 billion in volume, accounting for nearly 44% of the total volume. Grayscale’s Bitcoin Trust (GBTC) and Fidelity’s Bitcoin Fund (FBTC) also crossed the billion-dollar mark, recording $1.86 billion and $1.44 billion, respectively.

ETF analyst Eric Balchunas highlighted that the surge in volume appears to be driven by genuine demand rather than algorithmic or arbitrage trading. The frenzy is also evident in the Bitcoin futures ETFs market, with BITO, BITX, and BITI experiencing increased trading volume.

Bitcoin Price Surges to $64,000

Following the approval of spot Bitcoin ETFs by the SEC in January, Bitcoin’s price has seen a significant rally. The latest surge propelled the cryptocurrency’s value above $64,000. Analysts predict that as Bitcoin’s halving approaches, its price could soar to a new all-time high above $100,000 in 2024.

As of Thursday morning, Bitcoin was trading around $62,570, marking a 5.3% increase in the past 24 hours and a 22% increase in the past week.

“I asked around to some market makers and most say this volume is largely function of natural demand vs algo/arb type volume. Word is wirehouse platforms are seriously looking at adding them soon. I’m sure pressure is mounting for them. They like to see track record and get paid off but with grassroots demand like this, they gonna have to expedite.”