Trading volumes for the nine-spot Bitcoin exchange-traded funds (ETFs) known as the “new nine” have reached an all-time high as Bitcoin’s value soared to $54,938 on Monday. This surge reflects a growing interest in cryptocurrency investment options, with BlackRock’s IBIT leading the pack in terms of trading volume.
On February 26, the trading volumes for these ETFs reached unprecedented levels, surpassing $2.4 billion. This figure broke the previous record of $2.2 billion set on January 11. It’s important to note that these volumes do not include Grayscale’s converted Bitcoin ETF product, the Grayscale Bitcoin Trust (GBTC).
BlackRock’s IBIT emerged as the frontrunner on February 26, with a staggering $1.29 billion in trading volume, setting a new daily record with a remarkable 30% increase. Fidelity’s FBTC followed closely behind with a trading volume of $576 million. Other notable contributors include ARK 21Shares (ARKB) and Bitwise (BITB) ETFs, which recorded trading volumes of $276 million and $81 million, respectively.
Experts Eric Balchunas and James Seyffart highlighted the significance of the surge in trading volumes. Balchunas noted that increased volumes are typical at the start of the trading week, suggesting sustained interest in Bitcoin ETFs. Seyffart further emphasized the importance of February 26 as the second-largest trading day on record, reaching $3.2 billion when including flows from Grayscale’s Bitcoin ETF.
On February 26, Bitcoin’s price reached $54,938, its highest level in two years. However, it remains below the all-time high of $69,044 recorded on November 10, 2021. Despite this, market sentiment remains optimistic, driven by growing institutional interest and positive flow data.
The flow data for February 26 is still being analyzed, but BitMEX Research reports that over $583 million flowed into spot Bitcoin ETFs during the four-day trading week prior. It’s worth noting that on February 21, the first day without inflows since January 25, there was a net outflow of $35.7 million. Year-to-date, inflows into Bitcoin ETFs have exceeded $5.5 billion.
The significant inflows into IBIT, FBTC, ARKB, and BITB ETFs highlight the increasing confidence of investors in cryptocurrency investment options. In contrast, GBTC has experienced outflows totaling $7.4 billion. This divergence in investor behavior underscores the changing preferences and strategies within the cryptocurrency investment landscape.
The surge in trading volumes for the “new nine” spot Bitcoin ETFs represents a significant milestone in the cryptocurrency market. With BlackRock’s IBIT leading the way, investors are increasingly turning to ETFs as their preferred method of exposure to Bitcoin. As Bitcoin rallies and institutional interest grows, the cryptocurrency investment landscape is set for further evolution.
