On February 28, 2024, trading volumes for nine spot Bitcoin (BTC) ETFs soared to unprecedented levels, reaching an astounding $6 billion. This figure more than doubles the previous high recorded on February 26, which stood at $2.4 billion, as reported by Bloomberg Intelligence analyst Eric Balchunas.
Leading the pack among spot Bitcoin ETFs is the iShares Bitcoin Trust (IBIT) fund by BlackRock, with a remarkable trading volume of $3.3 billion. Fidelity Investments’ Fidelity Wise Origin Bitcoin Fund (FBTC) claimed the second position with a substantial trading volume of $1.4 billion. Balchunas highlights that both funds have surpassed their previous records, and the total number of transactions has surged to an impressive 500,000.
Despite this surge in trading activity, Balchunas notes that many market makers currently lack access to the spot Bitcoin ETF market. He commented, “I asked around to some market makers, and most said this volume is largely a function of natural demand vs. algo/arb type volume. Word is wirehouse platforms are seriously looking at adding them soon. I’m sure pressure is mounting for them.”
The heightened activity in the spot Bitcoin ETF sector coincided with a significant surge in the BTC rate, reaching its highest point since November 2021 at $64,000 on February 28, according to data from CoinMarketCap.
Amidst this rally, analysts at Glassnode observed that various indicators, including capital flows, exchange activity, leverage in crypto derivatives, and institutional demand, collectively signal an increased risk appetite among Bitcoin investors. As the demand for spot Bitcoin ETFs continues to surge, the cryptocurrency market demonstrates resilience and a renewed bullish sentiment.
