NEW YORK, April 2, 2024 - In March, trading volumes for spot Bitcoin ETFs surged to $111 billion, reflecting robust investor interest in Bitcoin. This figure represents nearly a threefold increase from the $42.2 billion traded in February, which was the first full month of trading following the debut of these investment products on January 11.

Bloomberg ETF analyst Eric Balchunas noted that the dramatic rise in March highlights a growing appetite for spot Bitcoin ETFs. Among the top performers, BlackRock’s Bitcoin ETF (IBIT) led the market, closely followed by Grayscale’s GBTC and Fidelity’s FBTC. Balchunas, through a chart shared by fellow analyst James Seyffart, pointed out IBIT's increasing market dominance as it surpassed GBTC in market share.

On April 1, net outflows from cumulative spot Bitcoin ETFs amounted to $86 million, according to Farside Investors. Despite BlackRock’s IBIT ETF experiencing inflows of $165.9 million, it was overshadowed by Grayscale’s GBTC, which saw $302.6 million in outflows. Fidelity’s FBTC recorded the second-highest inflows with $44 million on the same day, while ARK Invest’s 21Shares ETF (ARKB) experienced its first outflows of $300,000 since its launch.

By the end of March, BlackRock and Fidelity’s spot Bitcoin ETFs had amassed approximately $18 billion and $10 billion in assets under management, respectively, making them the leading funds in terms of inflows. In contrast, Grayscale’s GBTC faced a significant decline, surpassing $15 billion in total outflows after $300 million in outflows on April 1. GBTC's assets under management have since fallen by 46% to $22 million, as reported by Coinglass.

The surge in spot Bitcoin ETF trading volumes has significantly impacted Bitcoin markets, contributing to new all-time highs in March. With the upcoming Bitcoin supply halving less than 20 days away, market participants are anticipating a new cycle driven by both the success of these ETFs and the upcoming supply event.