Bitcoin ETF trading volume booms in March

YEREVAN ( — In March, trading volumes for spot Bitcoin exchange-traded funds (ETFs) soared to $111 billion, nearly tripling February’s figures. Grayscale and BlackRock ETFs led the charge, dominating the market.

Spot Bitcoin ETFs Triple in Volume, Signaling Market Surge

Bloomberg ETF analyst Eric Balchunas highlighted a dramatic uptick in the marketplace, noting that March’s trading activity for spot Bitcoin ETFs escalated impressively. This represents a significant leap from the $42.2 billion recorded in February, indicating a burgeoning investor interest and confidence in these digital asset funds.

Triple Play: Bitcoin ETF Volume Soars in March — Bloomberg Intelligence Report
Triple Play: Bitcoin ETF Volume Soars in March — Bloomberg Intelligence Report

The strong performance, with spot Bitcoin ETF volumes, underscores a rising interest in these investment products, which debuted on Jan. 11.

Is IBIT Becoming the Gold Standard of Bitcoin ETFs?

IBIT by BlackRock dominates the ETF market, outpacing Grayscale’s GBTC and Fidelity’s FBTC in trading volume.

Balchunas highlighted IBIT’s ascent in a recent tweet, showcasing a chart from analyst James Seyffart that illustrates how IBIT has overtaken GBTC in market share.

 Eric Balchunas Spotlights IBIT's Rise Over GBTC in Market Share
Eric Balchunas Spotlights IBIT’s Rise Over GBTC in Market Share

“While all of the ETFs won in terms of being profitable hits, $IBIT won the volume race and is officially the $GLD of Bitcoin.”

Bitcoin ETF flows table. Source: Farside Investors
Bitcoin ETF flows table. Source: Farside Investors

Grayscale Keeps Suffering

On April 1, Fidelity’s FBTC notched the second-largest inflows at $44 million. Meanwhile, ARK Invest’s 21Shares ETF, ARKB, experienced its initial outflows of $300,000 since it started trading on January 11.

Last month, BlackRock and Fidelity’s spot Bitcoin ETFs saw their assets under management hit roughly $18 billion and $10 billion, respectively, topping the charts regarding inflow success.

Grayscale’s GBTC has seen over $15 billion flee its coffers, with a significant $300 million withdrawal occurring on April 1. This latest outflow has slashed its assets under management by 46%, bringing it down to $22 million, Coinglass reports.

Increasing inflows appear ahead of the long-awaited Bitcoin Halving, a pre-programmed event that would slash BTC’s supply rate by half, effective April 19. This supply-demand dynamic could be bullish for the cryptocurrency, as traders anticipate it continuing its bull run toward $100,000 in 2024.

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