Bitcoin ETF Trading in March Hits Impressive Milestone of $111 Billion

Key Points:

• March saw Bitcoin ETF trading volume surge to $111 billion, tripling previous months, reflecting increased interest.
• BlackRock’s ETF leads, while GBTC faces significant outflows due to high fees.
• Bitcoin prices continue to soar, reaching over $73,000 for the first time.

In March, the trading volume of Bitcoin Exchange-Traded Funds (ETFs) surged to $111 billion, tripling that of February and January, according to Eric Balchunas, a senior analyst at Bloomberg ETF.

Bitcoin ETF Trading Volume Surges in March

This significant uptick in Bitcoin ETF trading underscores the mounting interest in these new crypto-based financial instruments, which debuted on January 11.

Among these ETFs, BlackRock Spot Bitcoin ETF (IBIT) emerged as the frontrunner in Bitcoin ETF trading volume, earning the title of the “SPDR Gold Share of Bitcoin.” Balchunas speculated on the prospects for April, suggesting uncertainty about whether the trading volume would surpass that of March.

Bitcoin Hits Record High Thanks to Bitcoin ETF’s Soar

Spot Bitcoin ETFs witnessed net inflows of approximately $12.1 billion by the end of the first quarter, as per BitMEX Research. However, the existing fund, GBTC, has experienced massive outflows totaling $14.7 billion since the advent of spot Bitcoin ETF trading. This exodus is attributed to the relatively high fees associated with GBTC and investors’ preference for offerings from more reputable firms.

While these funds contributed to the surge in Bitcoin demand and prices, the enthusiasm for spot Bitcoin ETFs appears to be waning. Despite the cooling interest in spot Bitcoin ETFs, their impact on Bitcoin’s market remains profound. The cryptocurrency continues to set new records, recently surpassing $73,000 for the first time.