Surge in Trading Activity for US-Listed Bitcoin ETFs Amidst Market Volatility
As Bitcoin (BTC) experienced a sharp decline of 7% within a 24-hour period, veering away from its trajectory towards its all-time high, US-listed spot Bitcoin exchange-traded funds (ETFs) saw unprecedented levels of activity on Tuesday. According to CoinGecko data, the leading digital currency’s abrupt price crash occurred after surpassing the significant milestone of $69,000.
Unprecedented Trading Volumes and Breakthroughs:
ETF analyst Eric Balchunas of Bloomberg Intelligence highlighted that the recently approved ten ETFs collectively recorded over $10 billion in trading volume during the session, exceeding the previous week’s record. Notably, funds such as BlackRock’s IBIT, Fidelity’s FBTC, Bitwise’s BITB, and ARKB, managed by Ark Invest and 21Shares, all shattered their personal volume records. Conversely, Grayscale’s GBTC witnessed significant outflows amidst this market turbulence.
Emergence of Top Performers and Noteworthy Achievements:
BlackRock’s IBIT notably emerged as the fourth most traded ETF overall, boasting an impressive $3.8 billion in volume, as reported by Barchart data. IBIT also achieved an asset under management (AUM) milestone of $10.03 billion the previous week, surpassing the iShares Silver Trust (SLV), the world’s largest silver trust. Balchunas emphasized the extraordinary growth of these ETFs within a remarkably short period, highlighting ProShares Short Bitcoin Strategy ETF (BITI) as a standout performer, particularly due to its nature as a short Bitcoin ETF. The surge in BITI’s trading activity was noted as unsurprising given its strategic focus. This surge in activity represents a significant shift in market dynamics, notably surpassing previous trading volume records set in February, indicating heightened investor interest and engagement amidst market volatility.
