BlackRock’s Bitcoin exchange-traded fund (ETF) has witnessed unprecedented trading activity, setting a new daily volume record amidst market fluctuations. The surge in trading volume comes as Bitcoin experiences a 6% decline from its daily high over the United States trading day.
New daily volume record
On March 14, nearly 100 million shares of BlackRock’s spot Bitcoin ETF were traded, totaling over $3.9 billion in trading volume. This surpasses the previous record of $3.7 billion set less than ten days ago on March 5, marking a significant milestone for the fund.
The surge in trading activity coincided with a 6% drop in Bitcoin’s price during the U.S. trading day. Despite this, BlackRock’s ETF has continued to attract investor interest, emerging as the top-performing fund by volume and net inflows among the ten new ETFs launched in January.
While BlackRock’s ETF dominates in trading volume, the Grayscale Bitcoin Trust (GBTC) remains the largest among the ten U.S. Bitcoin ETFs by assets. However, on March 14, BlackRock’s ETF surpassed GBTC in trading volume, highlighting its growing prominence in the market.
Market trends and analysis
The rise of Bitcoin ETFs has reshaped the landscape of cryptocurrency investment. Bloomberg ETF analyst Eric Balchunas noted that the combined monthly trading volumes of the ten ETFs have already exceeded previous months’ figures, with over $65 billion in volume recorded in March, indicating a significant uptick in investor participation.
The surge in trading volume and investor interest in Bitcoin ETFs reflect the growing acceptance of cryptocurrencies in traditional financial markets. Despite recent price fluctuations, the overall trend suggests increasing confidence and adoption of digital assets among investors.
BlackRock’s Bitcoin ETF has set a new milestone in trading activity, signaling robust investor demand for cryptocurrency exposure. As market dynamics continue to evolve, the performance of Bitcoin ETFs will likely remain a key indicator of sentiment and adoption within the broader investment community.
