💰 BlackRock’s Bitcoin ETF Breaks Records with $1.3 Billion Daily Volume

BlackRock's Bitcoin ETF IBIT Sets New Personal Record with $1.3 Billion Daily Volume on Tuesday

BlackRock’s Bitcoin ETF, as reported by Bloomberg Intelligence, sets a personal record with $1.3 billion in trading volume.

Updated: February 28, 2024 00:56 EST | 2 min read

Tanzeel Akhtar

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If you thought the hype around Bitcoin was dying down, think again. BlackRock’s spot Bitcoin exchange-traded fund (ETF), known by its ticker symbol “IBIT,” has shattered records with a staggering $1.3 billion in daily volume. That’s right, folks! The IBIT ETF continues to dominate the market and attract massive interest from investors.

According to Eric Balchunas from Bloomberg Intelligence, this is another intense volume day for the Nine. It’s trading at a level higher than most large-cap US stocks! Balchunas even wonders if this is the new normal or just some short-term algo/arb-related burst, a la $HODL.

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But wait, there’s more! IBIT saw over 100,000 individual trades in a single day. It used to do around 30,000-60,000 trades, but it found a new gear over the Presidents Day weekend. Balchunas thought it might be just pent-up volume due to the long weekend, but it did even more today, demolishing that theory.

Source: Midjourney

10 Years of Pent-up Demand for Spot Bitcoin ETFs

It seems the urge for spot Bitcoin ETFs has been building up for a decade. In a recent interview, MicroStrategy’s executive chairman and co-founder, Michael Saylor, commented on the tremendous demand for Bitcoin ETFs. “There’s 10 years of pent-up demand,” he told CNBC. Finally, mainstream investors have the opportunity to access Bitcoin, and that seems to be the driving force behind the surge in capital inflow.

📈 Bitcoin Price Rallies to a Two-Year High

Meanwhile, in the land of Bitcoin price movements, we witness a remarkable rally. On Tuesday, Bitcoin reached a two-year high, soaring to nearly $57,000 in Asian trading. It’s a true milestone for the cryptocurrency, fueled by strategic acquisitions and the regulatory green lights for spot Bitcoin ETFs. This rally signals a broader acceptance and integration of cryptocurrency into the financial mainstream.

🚀 Spot Ethereum ETFs Next?

While investors bask in the glory of Bitcoin ETFs, many investment firms have their sights set on spot Ethereum ETFs. BlackRock, Fidelity, Grayscale, VanEck, Invesco, Franklin Templeton, Galaxy, Cathy Wood’s Ark Invest, and 21Shares have all applied for spot Ethereum ETFs. The demand for these products continues to heat up, and it’s only a matter of time before Ethereum takes the spotlight.

Crypto ETFs Open the Floodgates for a Wider Audience

The approval of eleven Bitcoin spot ETFs in the US has proven there is an enormous appetite for such products. The same holds true for spot Ethereum ETFs. Ben Weiss, the CEO of CoinFlip, explains, “An ETH ETF approval would further increase the accessibility and reach of ETH while also bridging the gap between traditional finance and the digital economy.” Crypto ETFs unlock opportunities for investors who aren’t interested in the complexities of holding ETH themselves but still want exposure to one of the top-performing assets of the past decade.

Weiss predicts that this will lead to an influx of capital, increased credibility, and recognition of digital assets as a crucial component of any serious investment portfolio.

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Q&A:

Q: How does the record-breaking trading volume of BlackRock’s Bitcoin ETF affect the price of Bitcoin?

A: While the trading volume of BlackRock’s Bitcoin ETF does not directly impact the price of Bitcoin, it indicates a growing interest and adoption of cryptocurrency among institutional investors. This increased demand could potentially have an indirect effect on the price by driving up demand for Bitcoin in the market.

Q: What are the advantages of investing in spot Bitcoin ETFs over holding Bitcoin directly?

A: Spot Bitcoin ETFs provide investors with a more convenient and regulated way to gain exposure to Bitcoin. Unlike holding Bitcoin directly, investing in an ETF allows for easy buying and selling through traditional brokerage accounts. Additionally, ETFs offer the advantage of diversification across multiple Bitcoin holdings, reducing the risk associated with holding a single asset.

Q: Are spot Ethereum ETFs expected to have a similar impact as Bitcoin ETFs?

A: There is a strong possibility that spot Ethereum ETFs will have a similar impact to Bitcoin ETFs. Ethereum has gained significant traction in recent years and has become the second-largest cryptocurrency by market capitalization. With major investment firms lining up to launch spot Ethereum ETFs, it signals a growing demand for exposure to Ethereum among institutional investors.

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