Key Points
- US spot Bitcoin ETFs have exceeded $150 billion in cumulative trading volume.
- The market has seen significant outflows as Bitcoin’s price drops.
The trading volume for US spot Bitcoin exchange-traded funds (ETFs) has surpassed $150 billion. This milestone comes less than 10 weeks after the approval of ETFs from several major financial institutions, including BlackRock, Fidelity, and Bitwise.
Since March 8, the cumulative trading volume for spot Bitcoin ETFs has grown by $50 billion, reaching $151.4 billion at the close of trading. The trading volume for Tuesday was $5.6 billion, with BlackRock’s IBIT leading the way with $2.5 billion.
Market Share and Outflows
Grayscale’s GBTC fund has gradually lost market share, falling from 50.5% at the launch of the spot Bitcoin ETFs on January 11 to 26.5%. Meanwhile, BlackRock’s IBIT has grown its market share from 22.1% to 45.2%. Fidelity’s FBTC holds a 17.2% share of the market.
A record net outflow of $326.2 million was registered by US spot Bitcoin ETFs combined yesterday, more than double the previous record set on January 24. Grayscale’s GBTC saw significant outflows of $443.5 million on Tuesday, following record outflows of $642.5 million on Monday.
Impact on Bitcoin Price
The flows of spot Bitcoin ETFs have been a significant factor in Bitcoin’s price movement since their launch. Despite recent outflows and a 10% drop in Bitcoin’s price, the cryptocurrency recovered and is currently trading at $63,170, up over 50% year-to-date.
The change in flows is attributed to the type of investors, with evidence suggesting that few wealth managers are investing in the ETFs. The average trade size for IBIT of $13,000 indicates that retail investors were behind the inflows, which can more easily halt when prices stop climbing.
Despite the recent outflows and market volatility, long-term expectations for inflows to outperform remain.