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bitcoin spot exchange-traded funds (ETFs) created a new record with $10 billion in trading volumes as btc rose to a new all-time high above $69,000 before falling.
BlackRock's $IBIT ETF hit a new record with $788 million in inflows on March 5, followed by Fidelity's FBTC with $125 million.
Despite outflows of $322 million from Grayscale, bitcoin Spot ETFs recorded a total net inflow of $648 million, which is the largest single-day inflow since its launch on January 11.
bitcoin ETF Flow – March 5, 2024
All data included. Total net inflow of $648 million for the day. Biggest inflows since day 1. Blackrock with a record +$788.3 million per day. pic.twitter.com/zOJ5Y5XsEx
— BitMEX Research (@BitMEXResearch) March 6, 2024
“These are fantastic numbers for ETFs less than two months old,” said Bloomberg ETF analyst Eric Balchunas.
MILESTONE: All ten bitcoin ETFs generated $10 billion in volume today, breaking the previous record set last Wednesday. Volatility and volume go hand in hand with ETFs, so it's not a total surprise. That being said, these are fantastic numbers for sub-2 month ETFs. $ VA, $FBTC, $BITB, $ARKB All with record days. pic.twitter.com/rIdbhoYifV
– Eric Balchunas (@EricBalchunas) March 5, 2024
BlackRock's IBIT ETF was the fourth most traded ETF of all these investment vehicles in the US, while the Grayscale bitcoin Trust ETF was the seventh most traded. The Proshares btc Strategy ETF ranked tenth, according to Bar graphic data.
Grayscale outputs continue
Despite the apparent strong interest in btc spot ETFs, Grayscale continues to see capital outflows, which have now reached $10 billion since its launch.
However, the digital asset manager still has the same amount of assets as when its ETF was launched due to the rise in the price of bitcoin.
“While Grayscale is losing investors, it has more assets than when it launched, a phenomenon we call bull market subsidy.” –@EricBalchunas
Good look at how Grayscale's high fee tactic is paying off.
Include some color from your server.
through @AdMcMarkets https://t.co/DZMb5UT9MD pic.twitter.com/CNfbTTGqBX
– Nate Geraci (@NateGeraci) March 5, 2024
According to Balchunas, the “bull market subsidy” has seen Grayscale assets rise in value amid bitcoin’s recent gains. The trend has also seen Grayscale earn high returns from its bitcoin ETF, given that it has the highest fees.
bitcoin Hits All-Time High Before Rapid Correction
Record ETF volumes coincided with bitcoin's rally to a new all-time high above $69,000.
However, the cryptocurrency king failed to sustain the rally and fell below $61,000.
The drop appears to have created a buying opportunity as btc is trading in the green again. btc price was trading at $67,518 at 03:41 EST.
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