US Spot Bitcoin ETFs Reach Record Highs in Trading Volume
US spot Bitcoin ETFs saw another all-time high in daily trading volume on Wednesday, with $7.7 billion. This surge was led by BlackRock’s IBIT, which doubled its personal record on the third consecutive day with $3.3 billion in trading volume. Fidelity’s spot Bitcoin ETF also doubled its previous record with $1.4 billion in trading volume on the same day, according to Bloomberg analyst James Seyffart.
Bitcoin Price Updates
The price of the leading cryptocurrency briefly jumped above $64,000 at one point during the day, nearing its all-time high set in November 2021. Although the price of Bitcoin saw a correction later, hopes of a new all-time high are still undeterred. At the time of writing, Bitcoin is changing hands at around $61,300, up 7.6% in the last 24 hours and 20% in the last seven days.
Effects on Market and Expert Predictions
RIDIC: the New Nine doubled their volume record (set Monday) with just about $6 billion traded. $IBIT led with $3.3 billion, Fidelity did $1.4 billion (both double their previous records). The total number of trades was double too, over half a million individual trades between them. $IBIT alone > $QQQ. pic.twitter.com/ZzB5PWXA4f – Eric Balchunas (@EricBalchunas) February 28, 2024
Hunter Horsley, CEO of Bitwise Asset Management, referred to Bitcoin as having its “IPO moment,” stating that spot Bitcoin ETFs represent a turning point, opening the door for the vast resources of the U.S. capital markets to invest in Bitcoin for the first time. This significantly expands the available market and removes the need for waiting for new features. Horsley also believes that Bitcoin will “eat into gold’s total addressable market (TAM) faster than most anticipate,” potentially reaching a price of $250,000 “much sooner than many long-time observers would imagine.”
Horsley attributes this potential rapid growth to the increased accessibility brought by Bitcoin ETFs. He stated, “For 15 years, Bitcoin’s merits were proven, but its accessibility was limited. With spot ETFs, it’s like Bitcoin’s IPO moment, instantly available to any investor at the click of a button. This has led to a tenfold increase in the market.”
As Bitcoin bulls drive the market, another all-time high seems to be insight for the largest cryptocurrency by market cap. The recent bull run is mostly driven by institutional buying as ETFs gobble up more Bitcoins on a daily basis than are being produced. With Bitcoin halving in April, the demand and supply ratio will shift once again as the number of mined bitcoins will be reduced by half.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
