$111 Billion: Bitcoin ETFs See Record Volumes in March

Spot bitcoin exchange-traded funds (ETFs) noticed their buying and selling quantity surge to a document $111 billion in March, practically triple the $42 billion traded in February.

Permitted earlier this yr by the SEC, US spot bitcoin ETFs have quickly gained traction amongst buyers. Their volumes final month exceeded even essentially the most optimistic expectations.

In response to Bloomberg ETF analyst Eric Balchunas, March buying and selling quantity was round triple that of February and January. The huge rise signifies spot bitcoin ETFs are assembly sturdy demand from institutional and retail buyers. 

He acknowledged, “I am unable to think about April will probably be greater, however who is aware of.”

BlackRock’s Bitcoin ETF (IBIT) led the pack, capturing 50% of the full quantity. Grayscale’s GBTC took second place with 20%, whereas Constancy’s FBTC adopted at 17%.

Balchunas declared IBIT the “$GLD of bitcoin,” referring to the mammoth SPDR Gold ETF. He stated its March victory makes IBIT the undisputed chief amongst bitcoin ETFs.

The surge in buying and selling exercise aligns with Bitcoin’s climb to new all-time highs in March. Nevertheless, it additionally suggests spot ETFs are altering market dynamics and driving new demand.

Critics initially argued bitcoin markets would shrug off the brand new merchandise. But flows into funds like IBIT and FBTC have been overwhelmingly optimistic.

Demand is vastly outpacing bitcoin mined. ETFs purchased round 66,000 BTC in March, whereas miners solely produced 28,500. This supply-demand imbalance appears poised to develop as extra buyers get publicity via ETFs and newly mined cash get reduce in half in two weeks through the bitcoin halving occasion.

With sturdy inflows, belongings below administration, and buying and selling exercise, these new regulated devices have firmly established themselves inside Bitcoin markets. If March was any indication, their rise is barely simply starting.

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