Record-Breaking Day: BlackRock’s Bitcoin Exchange-Traded Funds Surpass $1 Billion In Trading

Distinct and diverse: On Feb 7, the aggregate daily trading activity for exchange-traded funds (ETFs) linked to spot Bitcoin surpassed a billion dollars, with BlackRock taking the lead.

James Seyffart, an analyst at Bloomberg Intelligence, characterized it as a significant day in terms of volume for BlackRock’s iShares Bitcoin Trust (IBIT), which recorded a daily trading volume of $341.2 million. This figure outpaced the $296.5 million volume of the Grayscale Bitcoin Trust, as reported by Seyffart.

Simultaneously, Fidelity’s FBTC fund secured the third position with a trading volume of $200 million, while the remaining seven funds collectively reached a daily volume of $188 million. This cumulative activity amounted to over a billion dollars for the day.

Despite crossing the $1 billion mark, Seyffart downplayed its significance for BTC ETFs, stating that it “isn’t that big of a deal.” He emphasized that while it represented a slight increase from recent days, it remained considerably lower than the initial weeks of trading.

During the ninth consecutive day, spot Bitcoin ETFs have consistently attracted more capital compared to the outflows from GBTC.

Farside’s preliminary data reveals that on Feb 7, GBTC experienced outflows totalling $81 million, whereas the combined inflows into the other nine spots of Bitcoin ETFs reached $226 million. This resulted in a net flow of $145 million.

New ETFs Challenge MicroStrategy’s Bitcoin Holdings

Moreover, BlackRock experienced an influx of $56 million, Fidelity’s fund saw a rise of $130 million, and Bitwise recorded inflows of $21 million.

As of Feb 7, the combined BTC holdings of nine newly launched ETFs were on the verge of surpassing those of MicroStrategy, the largest corporate holder of the asset, according to investor and author Fred Krueger on Feb 8.

The ETF funds currently hold approximately 187,000 BTC, while MicroStrategy, having acquired an additional 850 BTC in January, possesses 190,000 coins. This brings MicroStrategy’s total holdings to a value exceeding $8 billion.

Krueger remarked, “ETFs are reshaping the landscape. They have dominated every asset class and now indulge in Bitcoin as their dessert.

However, Reports indicate that Fidelity has included spot Bitcoin in their All-in-One Conservative ETF allocation.

ETF analyst Eric Balchunas said, “The addition to conservative portfolios is likely a positive indicator.”

Related Reading | Catalyzing CBDC Revolution: India’s Offline Push For Rural Inclusion Accelerates

The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.

Comments (No)

Leave a Reply