Bitcoin ETFs Hit $2B Volume for 2nd Straight Day

The demand for spot Bitcoin ETFs is soaring, with nine spot Bitcoin ETFs reaching a total trading volume of $2 billion on February 27.

Demand for spot Bitcoin ETFs remains at an all-time high, as evidenced by the fact that the total trading volume of all nine spot Bitcoin ETFs reached $2 billion on Tuesday, February 27, marking the second consecutive day that this has occurred.

Bitcoin ETFs Trading Volumes Rises

Eric Balchunas, an ETF strategist for Bloomberg noted today that the significant trading activity for the Nine Bitcoin ETFs reached $2 billion. The fact that $IBIT achieved a new personal record with a trading volume of $1.3 billion, which was more than the daily trade volume of the majority of large-cap US companies, is particularly noteworthy.

Balchunas considered if this rise in volume indicates a new normal or if it will only be temporary and is fueled by arbitrage or algorithmic trading activity.

Additionally, Balchunas found it notable that BlackRock’s $IBIT experienced over 100,000 individual trades. This represents a significant increase from the average trading activity of 30,000 to 60,000 trades per day prior to Tuesday.

This idea is called into question because trading activity continued to be elevated, even though initial speculation suggested that the rise in volume was due to pent-up demand following the President’s Day weekend.

On the other side, the Grayscale Bitcoin Exchange-Traded Fund (GBTC) has once again seen a surge in outflows, even though previously it had slowed down earlier this week.

Additionally, on Tuesday, GBTC reported a total outflow of $125 million, bringing the total amount of withdrawals to over $7.5 billion since the ETF approval over a month ago.

Although GBTC is the most widely traded and largest of its peers, its 1.5% management charge makes it the most expensive choice currently available.

The bulk of its competitors, on the other hand, impose costs that are lower than 0.3%, making them more cost-effective options. Currently, the price of Bitcoin is hovering close to $57,000, following a considerable increase that occurred earlier on Monday.

On-chain indicators, however, continue to demonstrate strength as whale accumulation has continued throughout the preceding on Monday.

A whopping 76,670 bitcoins (BTC) were taken out of cryptocurrency exchanges in just the previous month, according to a recent analysis conducted by cryptocurrency expert Ali Martinez.

This represents a massive outflow of Bitcoin (BTC) from cryptocurrency exchanges. This movement is associated with a total value greater than $3.45 billion.

Before the supply of Bitcoin decreased, Martinez underlined how important it is for investors to ensure they have a sufficient amount of the cryptocurrency.

The Bitcoin price has not given in to the overwhelming selling pressure and has remained stable at approximately $57,000. If Bitcoin falls to $55,900, Ali Martinez thinks that around $300 million worth of liquidations will take place across a variety of venues.