Bitcoin exchange-traded funds (ETFs) focused on spot trading experienced a significant surge in trading volume during March, reaching a total of $111 billion. This represents almost three times the trading volume recorded in February, with Grayscale and BlackRock ETFs leading the market.
Bloomberg ETF analyst Eric Balchunas shared data revealing that spot Bitcoin ETF trading volume hit $111 billion in March, compared to $42.2 billion in February. It’s worth noting that February marked the first full month of trading for Bitcoin investment products, which made their market debut on January 11. Therefore, the strong performance in March further underscores the growing interest in spot Bitcoin ETFs.
Among the spot Bitcoin ETFs, BlackRock’s IBIT continues to dominate the trading volume, followed by Grayscale’s GBTC and Fidelity’s FBTC. Balchunas acknowledged this dominance in a subsequent post, sharing a chart by fellow analyst James Seyffart that shows IBIT surpassing GBTC in market share.
On April 1, data from Farside Investors revealed that the cumulative spot Bitcoin ETFs experienced net outflows of $86 million. While BlackRock’s IBIT saw inflows of $165.9 million, Grayscale recorded outflows of $302.6 million. Fidelity’s FBTC had the second highest inflows of $44 million, while ARK Invest 21Shares ETF ARKB saw its first outflows of $300,000 since trading began on January 11.
BlackRock and Fidelity’s spot Bitcoin ETFs reached approximately $18 billion and $10 billion, respectively, in assets under management last month, making them the most successful in terms of inflows. On the other hand, Grayscale’s GBTC has experienced total outflows surpassing $15 billion, with over $300 million in outflows recorded on April 1. As a result, GBTC’s assets under management have dropped by 46% to $22 million, according to data from Coinglass.
The introduction of spot Bitcoin ETFs has had a profound impact on the BTC markets, contributing to new all-time highs in March. Market participants anticipate a different market cycle that combines the success of the ETFs with the upcoming Bitcoin supply halving, which is less than 20 days away.
It’s important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and consider the risks involved before making any investment or trading decisions.