For the second consecutive day on Tuesday, February 27, trading volumes for all nine spot Bitcoin ETFs combined reached $2 billion, reflecting sustained peak demand.
Bitcoin ETFs Trading Volumes Soar
Bloomberg’s ETF strategist Eric Balchunas noted another day of significant trading volume for the Nine, surpassing $2 billion. Notably, $IBIT set a new personal record with $1.3 billion in trading volume, exceeding the daily trade volume of most large-cap US stocks. Balchunas pondered whether this surge in volume is indicative of a new normal or a short-term phenomenon driven by algorithmic trading or arbitrage activities.
Another intense volume day for the Nine with well over $2b traded. $IBIT broke its personal record again w/ $1.3b (for context that’s more than most large cap US stocks trade). I don’t know if this is a new normal or some kind of short-term algo/arb-related burst a la $HODL. pic.twitter.com/KkCkdQKe9r
— Eric Balchunas (@EricBalchunas) February 27, 2024
Additionally, Balchunas found it noteworthy that BlackRock’s $IBIT experienced over 100,000 individual trades, a substantial increase from its typical trading activity of 30,000 to 60,000 trades per day leading up to Tuesday. Despite initial speculation that the surge in volume was due to pent-up demand following the Presidents Day weekend, trading activity remained elevated, challenging this theory.
On the other hand, the Grayscale Bitcoin ETF GBTC has once again witnessed a surge in outflows after slowing down earlier this week. Also, on Tuesday, GBTC recorded $125 million in total outflows taking the total figure of outflows to over $7.5 billion ever since the ETF approval last month.
Although GBTC stands out as the largest and most frequently traded among its counterparts, its management fee of 1.5% renders it the most costly option available. In contrast, the majority of its peers charge fees below 0.3%, making them more economical alternatives.
BTC Price Action
After a strong rally earlier on Monday, the Bitcoin price is hovering close to $57,000 as of now. However, on-chain indicators continue to show strength as whale accumulation continues over the past week.
In a recent analysis, crypto analyst Ali Martinez revealed a significant outflow of Bitcoin (BTC) from cryptocurrency exchanges, with a staggering 76,670 BTC withdrawn in the past month alone. This movement amounts to a total value exceeding $3.45 billion. Martinez emphasized the urgency for investors to secure their share of Bitcoin before the available supply diminishes further.
The BTC price has remained steady at around $57,000 not giving up to the selling pressure. Ali Martinez estimates that approximately $300 million in liquidations will occur across various platforms if Bitcoin experiences a decline to $55,900.
Around $300 million will be liquidated across the board if #Bitcoin drops to $55,900! pic.twitter.com/GSuNue0beo
— Ali (@ali_charts) February 27, 2024
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
âś“ Share: