March marked a record high for spot Bitcoin ETF trading volumes, nearly tripling from the previous month—from $42 billion to $111 billion.
MARCH MADNESS: Bitcoin ETFs traded $111b in March, which is just about triple what they did in Feb and Jan. I added the months where only GBTC was on market for further context. I can’t imagine April will be bigger but who knows.. pic.twitter.com/AJEE0mPmpW
— Eric Balchunas (@EricBalchunas) April 2, 2024
“I can’t imagine April will be bigger, but who knows,” stated Bloomberg analyst Eric Balchunas.
According to SoSoValue, three exchange-traded funds from Grayscale (GBTC), BlackRock (IBIT), and Fidelity (FBTC) continue to dominate trading volumes.
Meanwhile, the total outflow from GBTC since its launch has reached $15 billion.
In dollar terms, last month saw the assets under management for BlackRock and Fidelity increase to $18 billion and $10 billion, respectively.
A recovery for Bitcoin ETFs, with US$862m inflows last week pic.twitter.com/D1OWUSdGIU
— James Butterfill (@jbutterfill) April 1, 2024
Balchunas also noted that IBIT has managed to capture market share from GBTC.
Great chart from @JSeyff that shows how $IBIT has just taken over the volume market share from $GBTC. While all of the ETFs won in terms of being profitable hits, $IBIT won the volume race and is officially the $GLD of bitcoin. It’s basically a wrap. pic.twitter.com/SGe8gH1heL
— Eric Balchunas (@EricBalchunas) April 2, 2024
“While all ETFs won in terms of profitability, IBIT won the volume race and is officially the GLD of bitcoin,” he added.
As of the close of trading on April 2, net inflows into exchange-traded funds based on the first cryptocurrency amounted to $39.4 million, compared to an outflow of $85.8 million the previous day.
CoinShares has suggested that Bitcoin ETFs may face a demand shock in the coming months.
Bitwise’s Chief Investment Officer Matt Hougan predicted an increase in the allocation of digital gold to 3% amid the success of exchange-traded funds.