The crypto market witnessed an unprecedented surge in popularity for bitcoin-etf/” target=”_blank” rel=”noopener”>bitcoin exchange-traded funds (ETFs), with daily trading volumes reaching unprecedented levels for the second day in a row. This significant increase in investor interest was further highlighted by the combined daily trading volume of approximately $2 billion on Feb. 27, 2023.
Record-breaking Trading Performance
The bitcoin investment landscape was dominated by BlackRock’s iShares bitcoin Trust ETF (IBIT), which set a new record with an impressive daily trading volume of $1.3 billion. This figure dwarfed the average daily trades of most large-cap United States stocks, underscoring the immense curiosity and demand among investors towards cryptocurrency investment.
Diverse Trading Volume Among Nine bitcoin ETFs
Among the notable performers, the Fidelity Wise Origin bitcoin Fund (FBTC) reported a substantial daily trading volume of $578 million. Meanwhile, ARK 21Shares bitcoin ETF (ARKB) followed closely behind with $204 million in daily trading volume. The wide array of investment options, each catering to various investor preferences and risk appetites, contributed significantly to the overall dynamism within the market.
Since their inception on Jan. 11, these nine bitcoin ETFs, excluding the converted Grayscale bitcoin Trust (GBTC), have consistently exceeded expectations. Trading volumes for these ETFs surpassed $2 billion on Feb. 26 and Feb. 27, representing a significant milestone in the cryptocurrency investment sphere.
Positive Net Inflows Amidst Market Volatility
Despite witnessing outflows from GBTC, the combined net inflow for these ETFs amounted to a substantial $574 million on Feb. 27. This figure marked an increase from the previous day’s inflow of $520 million, reflecting growing investor confidence and enthusiasm in the cryptocurrency market.
BlackRock’s IBIT led the charge with $520 million in net inflows, while Fidelity’s FBTC contributed $126 million. Bitwise’s fund also gained considerable attention, recording a substantial net inflow of $18.3 million. The robust inflow figures underscored the increasing acceptance of bitcoin ETFs as a favored investment avenue for investors seeking exposure to cryptocurrencies.
