Spot Bitcoin ETFs See Over $1 Billion in Daily Trading Volume, BlackRock’s IBIT Outshines

Spot Bitcoin (BTC) exchange-traded funds (ETFs) have seen their total daily trading volume exceed $1 billion on Wednesday, with BlackRock emerging as the top performer.

In a recent post on X, Bloomberg Intelligence analyst James Seyffart highlighted the standout performance of BlackRock’s IBIT Bitcoin ETF, which recorded a daily trading volume of $341.2 million.

The fund surpassed the $296.5 million volume of Grayscale Bitcoin Trust, which recorded second place, according to Seyffart’s analysis.

Fidelity’s FBTC fund secured the third spot with a trading volume of $200 million, while the remaining seven funds combined contributed $188 million to the daily volume, culminating in a total trading volume surpassing the billion-dollar mark for the day.

$1 Billion in Daily Trading Volume is Not Significant

In another post, Seyffart noted that crossing the $1 billion threshold is noteworthy but emphasized that it may not be considered a significant achievement for Bitcoin ETFs.

He said that while the figure represents an increase compared to recent days, it still falls short of the early weeks of trading.

Should have been more clear. Crossing $1 billion isn't that big of a deal for the #Bitcoin ETFs. It's a tick up from recent days but still far below the first couple weeks of trading

If you're a terminal client you can view this chart at G #BI 124517<GO> https://t.co/79SW2qSHAZ pic.twitter.com/rRQTEVzgUr

— James Seyffart (@JSeyff) February 7, 2024

In addition to the impressive trading volumes, inflows into spot Bitcoin ETFs continued to outpace outflows from Grayscale Bitcoin Trust (GBTC) for the ninth consecutive day.

Preliminary data from Farside revealed that GBTC experienced $81 million in outflows on February 7, while the other nine spot Bitcoin ETFs attracted $226 million in inflows, resulting in net flows of $145 million.

Among the spot Bitcoin ETFs, BlackRock witnessed an inflow of $56 million, Fidelity’s fund increased by $130 million, and Bitwise recorded inflows of $21 million.

BTC Holdings of Spot ETFs to Exceed MicroStrategy’s Stash

In another sign of the growing popularity of spot Bitcoin ETFs, the combined Bitcoin holdings of the newly launched nine ETFs were on the verge of surpassing those of MicroStrategy, the largest corporate holder of the asset.

“It will have taken less than 30 days for the New9 to overtake MSTR in Bitcoin Holdings,” investor and author Fred Krueger said in a post.

As of February 7, the ETF funds held approximately 187,000 BTC, while MicroStrategy possessed 190,000 coins, having acquired an additional 850 BTC in January, bringing its total holdings to a value exceeding $8 billion.

“ETFs are eating the world. They ate every other asset class, and they’re having Bitcoin for dessert.”

Tomorrow is the day the Green (187 BTC) switches places with the Orange (190 BTC).

It will have taken less than 30 days for the New9 to overtake MSTR in Bitcoin Holdings.

ETFs are eating the world. They ate every other asset class, and they're having Bitcoin for desert. pic.twitter.com/sJDMMxg8sl

— Fred Krueger (@dotkrueger) February 8, 2024

As reported, BlackRock and Fidelity’s spot Bitcoin ETFs have emerged among the top 10 funds with the highest inflows in January.

BlackRock’s IBIT secured the eighth position with an estimated $2.6 billion in net flows, while FBTC claimed the tenth spot, attracting $2.2 billion in net flows.

In contrast, the Grayscale Bitcoin Trust (GBTC) experienced significant outflows, with an estimated $5.7 billion exiting the fund in January, marking the second-highest outflows among ETFs.

Still, during the trading days from January 26 to February 2, the inflows into the new spot Bitcoin funds surpassed the outflows from GBTC, which experienced its second-lowest outflow day on February 2, amounting to $144.6 million.