US spot Bitcoin ETFs continue upward trajectory, gain $111 billion in trading volume in March
The performance is indicative of growing interest in the Bitcoin ETF instruments
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The US SEC (Securities and Exchange Commission) approved ten spot Bitcoin ETFs (exchange-traded funds) on January 10, 2024, from well-known financial institutions like BlackRock, Fidelity, Grayscale, and VanEck, among others. They have outperformed even the most optimistic of expectations since then, propelling Bitcoin past its last all-time high witnessed in 2021 (over $68,000) and to above $73,000 levels.
As Standard Chartered Bank forecasted in 2023, Bitcoin might as well be all set to meet its forecast of $100,000 by the end of 2024.
In March, the aforementioned spot Bitcoin ETFs witnessed a spike in their trading volume, going up to $111 billion. Notably, the March trading volume is about three times of what was recorded in February (about $42,2 billion). The frontrunners have been Grayscale’s GBTC, BlackRock’s IBIT, and Fidelity’s FBTC.
This performance signifies not only continued but increased investor interest in these instruments. Notably, spot Bitcoin ETFs allow traditional investors to gain exposure to the crypto without having to onboard a crypto exchange with unfamiliar UX. This has expanded the investor base for Bitcoin by introducing people still uninitiated to the asset class, which is the reason for Bitcoin’s latest rally.
On April 1, BlackRock’s IBIT recorded an inflow of $165.9 million, succeeded by Fidelity’s FBTC’s inflows of $44 million on April 1.
