NEW YORK, March 6, 2024 — BlackRock’s spot Bitcoin exchange-traded fund (ETF) achieved a new milestone today with record-breaking daily trading volume, coinciding with Bitcoin reaching an all-time high.
The leading cryptocurrency surged to a new peak of over $69,100 on Tuesday, surpassing its previous record from November 2021. However, Bitcoin's price then sharply declined to around $61,000 amidst market volatility.
During this turbulent period, BlackRock’s iShares Bitcoin Trust ETF recorded a remarkable $3.7 billion in trading volume, according to TradingView. This surpasses its previous high of $3.3 billion set just last Wednesday by $400 million.
Bloomberg Intelligence analyst Eric Balchunas described the figures as “insane” in a post on X, noting that several spot Bitcoin ETFs are achieving record volumes.r
Since the U.S. Securities and Exchange Commission (SEC) approved 10 spot Bitcoin ETFs on January 10, BlackRock’s fund has consistently outperformed its competitors. Notable rivals include Fidelity Investments’ Wise Origin Bitcoin Fund, which also set a record for daily volume today, and the Grayscale Bitcoin Trust. These ETFs have played a significant role in Bitcoin's recent rally, attracting substantial investment from mainstream investors.
In a separate X post, Balchunas attributed much of Bitcoin’s price surge to the hype surrounding ETFs, both before and after the SEC’s approval.
Bitcoin’s upward trajectory began in January 2023, but it was BlackRock’s June 15 filing for a U.S. spot Bitcoin ETF that sparked a surge in ETF-related enthusiasm.
Spot Bitcoin ETFs now collectively hold $50 billion in assets under management, with $8 billion of that coming from recent inflows, according to Balchunas.
The iShares fund has amassed $10.7 billion in assets under management in less than two months since its launch, making it the fastest-growing ETF in history.
These spot Bitcoin ETFs offer investors a way to gain exposure to Bitcoin without directly holding the asset. Balchunas highlighted the advantages of ETFs, noting their liquidity, cost-effectiveness, and convenience, which make them an appealing choice for investors.