Bitcoin ETF shatter previous records with a volume of $7.4 billion

selective focus photo of Bitcoin near monitor – After watching my portfolio in usd drop by over 50% in one day I realized it wasn’t usd that is important, it is the btc ratio. You see, I’m holding all altcoins, which help me gain more bitcoin as they rise in price. End of the day, I believe Bitcoin is king. This photo represents Bitcoins ratio to altcoins (seen in the trading chart behind). – unsplash

Since they were approved, Bitcoin ETFs have done well. They’ve attracted billions of dollars in volume and inflows. It clearly shows how well-liked, and in demand, the token has become as an investment.

In the first month of trading, Bitcoin ETFs notched over $10 billion in managed assets. By the end of February, this figure had shot up to $20 billion. Add to this, record-breaking volumes and net inflows on the last day of the month – a new historical peak was established.

Bitcoin ETFs hit all-time trading high

On February 28, the trading activity for Bitcoin ETFs reached an all-time peak of $7.4 billion. It was accompanied by a significant inflow of $673 million. Although Grayscale had more funds leaving than coming in, the other nine ETF programs managed to attract over $890 million.

BlackRock has made a splash, reaching a new record high by pulling in over $612 million. To put it in perspective, the iShares Bitcoin Trust (IBIT) experienced a massive transaction of about 96 million shares on Wednesday, per FactSet’s data. It is a significant leap from its earlier record of about 43 million shares traded on Tuesday.

An extraordinary number of shares were traded for another billion-dollar fund, the Fidelity Wise Origin Bitcoin Fund (FBTC). On Wednesday, about 27 million shares were traded. This number surpasses the fund’s first day of trading on January 11 when 16.8 million shares were traded.

The ARK 21Shares Bitcoin ETF experienced an all-time high in trading, with about 7 million trades. It is around 1 million more than the previous record set on January 11.

The busy activity within these funds likely indicates that regular traders are using the ETFs to join in the Bitcoin surge. Bitcoin, the biggest cryptocurrency, climbed over the $60,000 mark on Wednesday – its first since November 2021. These events are also happening as we countdown to the halving, causing some worry about a possible shortage of Bitcoin supply.

Bitcoin halving

The term ‘halving’ refers to an automated process in Bitcoin mining. This event takes place roughly every four years after 210,000 blocks have been developed.

It cuts down the reward for generating new bitcoins by half. That’s why it’s called ‘halving’. We last saw this happen in 2020; the next one is likely due around April.

The halving process is designed to decrease the number of new coins entering the market, similar to how gold becomes harder to obtain over time.

Douglas Boneparth, the president of Bone Fide Wealth and a renowned member of CNBC’s Financial Advisor Council, suggests that the ‘halving’ could drive Bitcoin prices up as investors start fearing a shortage.

If we look back, Bitcoin’s value has increased each time after the past three halving events. Nevertheless, the rate of return has lessened with each halving, as reported by CoinDesk.

ETF trading soars amid Bitcoin value surge

ETFs attract all sorts of investors, but the high daily trading volumes indicate that regular, everyday traders are a big part of those buying and selling these funds.

Even more remarkable is the trading volume when factoring in the price. Since the approval of the Bitcoin ETFs, their value has soared by roughly 30%. Additionally, all tracking funds have experienced a price surge over the last month and a half, culminating in a significant leap this week.

Consequently, with this price ascent, a notable number of these funds recorded their highest-ever dollar amount traded on Wednesday.

Grayscale Bitcoin Trust went against the trend. It didn’t reach the usual trading volume we saw in January. Since GBTC started, it’s seen a lot of money go out. On Wednesday, about 34 million shares were traded, much less than it saw on January 11. Despite this, it still resulted in over $1.5 billion in trading.