Bloomberg analyst pointed out that the nine ETFs set a new record for the largest trading volume in a single trading day, reaching approximately $2 billion, especially VanEck’s $HODL, which saw a trading volume increase of more than 14 times, approaching $400 million.
(Bitcoin ETF Trading Volume Hits Record High of $2 Billion)
(Background: Ethereum V Soars Through $3,030, Bitcoin Rebounds After Approaching $53,000, Starknet Oscillates at $2)
Since the launch of Bitcoin ETF on January 11, trading activity has remained hot. According to Eric Balchunas, an ETF analyst at Bloomberg, the trading volume of nine ETFs (excluding GBTC) reached the highest single-day trading volume since the market opened, reaching approximately $2 billion.
This huge trading volume is mainly due to the significant contributions of VanEck’s $HODL, WisdomTree’s $BTCW, and Bitwise’s $BITB, all of which have broken their respective records, reaching $399 million, $221 million, and $178 million, respectively.
$HODL’s trading volume increased more than 14 times
In addition, regarding the soaring trading volume of $HODL, which exceeded $258 million (14 times its average daily trading volume), he speculates that it is not driven by a single large investor, but rather composed of 32,000 individual trades, which is 60 times its average daily trading volume.
As for this sudden and explosive growth in trading, he currently does not have a definitive explanation, only speculating that there are two reasons:
It may be that a Reddit or TikTok influencer recommended the product to their followers, which is similar to retail investors banding together.
Another theory is that this may be trading between market makers. However, he also pointed out that the liquidity of $IBIT and $BITO is stronger, and it is unclear why institutions would do this.
Bitcoin ETFs have attracted over 100,000 BTC
In terms of fund flows, according to Lookonchain’s statistical data, Ark Investment’s $ARKB and Fidelity’s $FBTC had the most significant inflows yesterday, increasing their holdings by 2,700 BTC (worth about $138 million) and 2,252 BTC (worth about $115 million) respectively. Excluding GBTC, the eight ETFs increased their holdings by a total of 5,008 BTC, worth about $256 million.
In addition, the latest outflow from GBTC is $137 million. From the chart drawn by @Sinz_Bitguide, it can be seen that the initial outflow of funds from GBTC seems to be gradually subsiding.
Since the launch of the Bitcoin ETF, the net inflow of the product has been 107,401 BTC, which is worth about $5.584 billion at the current price of around $52,000.
Related Reports:
QCP Capital: Bitcoin Easily Breaks $69,000 in March! Spot ETF Continues to Attract Funds, with an Average Daily Net Inflow of 13,000 BTC
Bitcoin Spot ETF Trading Volume Approaching CEX! CryptoQuant: Institutional Influence on BTC Will Become More Obvious
Real-time Status of Bitcoin Spot ETF: BlackRock’s Trading Volume Surpasses Grayscale for the Second Time, GBTC Disposal Down by 50%