March 5 was not just the day that Bitcoin made an all-time high in USD; it was also the day that the new spot ETFs hit record trading volumes.
The new ten Bitcoin ETFs did $10 billion in trading volume on Tuesday, smashing the previous record set on Feb. 28, reported Bloomberg ETF analyst Eric Balchunas.
Volatility and volume go hand in hand with ETFs, so “not totally surprised,” he said before adding that “these are bananas numbers” for the funds under two months old.
MILESTONE: the ten Bitcoin ETFs did $10b in volume today, smashing prev record set last Wed.. Volatility and volume go hand in hand with ETFs so not totally surprised. That said these are bananas numbers for ETfs under 2mo old. $IBIT, $FBTC, $BITB, $ARKB all w record days. pic.twitter.com/rIdbhoYifV
— Eric Balchunas (@EricBalchunas) March 5, 2024
Record Volumes for ETFs
BlackRock’s IBIT, Fidelity’s FBTC, Bitwise’s BITB, and the Ark 21Shares ARKB fund all had record trading volume days.
Not included in the new nine, the Short Bitcoin Strategy ETF (BITI) from ProShares also had a record trading day, which is “not a surprise considering it is a short Bitcoin ETF,” commented Balchunas.
The ProShares Bitcoin Strategy ETF (BITO) also broke its record, as did the Volatility Shares 2x leveraged Bitcoin Strategy ETF (BITX) fund. The analyst commented on the impact spot markets and Bitcoin’s new high have had on derivatives markets:
“Interesting the favorable impact spot craze has had on futures ETFs, huge spillover effect … didn’t anticipate that.”
He also pointed out that the ten spot Bitcoin ETFs have blown through $50 billion in assets under management. They began life seven weeks ago with less than $30 billion, and around $8 billion of it is from flows, while the rest is from Bitcoin’s value increasing, he said.
“If they keep up this pace and add $10b a month (which is pretty insane but very possible if BTC price complies) they will pass gold ETFs this summer.”
The ten spot bitcoin ETFs have blown through $50b in assets.. began life 7 weeks ago under $30b. About $8b of it is from flows, the rest from bitcoin value going up. pic.twitter.com/CZCl4mdd7Y
— Eric Balchunas (@EricBalchunas) March 5, 2024
Moreover, March 4 was one of the highest days for inflows for BlackRock and Fidelity, as they notched up more than $400 million each.
Preliminary data from Farside Investors indicates that yesterday was another large outflow for Grayscale, with $332 million exiting the GBTC fund.
Leverage Flush Follows BTC Crash
Bitcoin flash crashed 12% following its new all-time high on Tuesday. The asset had recovered a little and was trading around the $66,000 level at the time of writing.
According to Coinglass, more than 312,00 traders, mostly longs, were liquidated over the past 24 hours, and total liquidations came in at $1.15 billion.
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