BlackRock’s Bitcoin ETF Breaks Personal Record With $1.3B Volume: Bloomberg Intelligence

BlackRock’s spot Bitcoin exchange-traded fund (ETF) trading under the ticker symbol “IBIT” broke its personal record on Tuesday attracting $1.3 billion record daily volume, according to Eric Balchunas from Bloomberg Intelligence.

U.S.-listed IBIT continues to lead the market and set an unprecedented record in the market as the product continues to attract huge interest.

“Another intense volume day for the Nine with well over $2b traded. $IBIT broke its personal record again w/ $1.3b (for context that’s more than most large cap US stocks trade). I don’t know if this is a new normal or some kind of short-term algo/arb-related burst a la $HODL,” posted Balchunas on X.

“Also interesting $IBIT saw over 100,000 individual trades today. It was doing 30-60k the whole time up until Tuesday. It’s like it found a new gear over Pres Day wknd. I thought maybe it was just pent up volume due to long wknd but it did even more today so there goes that theory,” adds Balchunas.

Also interesting $IBIT saw over 100,000 individual trades today. It was doing 30-60k the whole time up until Tuesday. It's like it found a new gear over Pres Day wknd. I thought maybe it was just pent up volume due to long wknd but it did even more today so there goes that theory pic.twitter.com/YTWp4BosIo

— Eric Balchunas (@EricBalchunas) February 27, 2024

10 Years of Pent-up Demand for Spot Bitcoin ETFs

There is pent-up demand for the spot Bitcoin ETFs. In a recent interview, MicroStrategy executive chairman and co-founder Michael Saylor said there is over a decade of pent-up demand for Bitcoin ETFs.

“There’s 10 years of pent-up demand people been waiting for these ETFs and finally, mainstream investors are able to access Bitcoin and I think that’s what’s driving the surge of capital in the asset class,” Saylor told CNBC.

Bitcoin Prices Rallies to a Tw0-Year High

On Monday, Bitcoin price soared to a two-year high, touching nearly $57,000 in Asian trading, marking a significant milestone in the cryptocurrency’s journey. This rally, underpinned by strategic acquisitions and regulatory green lights for spot Bitcoin ETFs, hints at a broader acceptance and integration of cryptocurrency into the financial mainstream.

Spot Ethereum ETFs Next?

Many investment firms have filed applications with the Securities and Exchange Commission (SEC) to launch spot Ethereum ETFs in the U.S. market as demand for such products continues to heat up.

So far, BlackRock, Fidelity, Grayscale, VanEck, Invesco, Franklin Templeton, Galaxy, as well as Cathy Wood’s Ark Invests and 21Shares, have all submitted applications for a spot Ethereum ETF.

Crypto ETFs Open the Floodgates for Wider Audience

The approval of eleven Bitcoin spot ETFs in the U.S. showed there is huge appetite for such products. There is a similar case for spot Ethereum ETFs.

“An ETH ETF approval would further increase the accessibility and reach of ETH while also bridging the gap between traditional finance and the digital economy,” Ben Weiss, CEO of CoinFlip told Cryptonews.

“Historically, crypto offered an alternative way for people to build wealth without relying on third-party intermediaries such as traditional banks or government bodies. Existing investors typically lean toward self-custody options where they manage their own assets,” adds Weiss.

Weiss goes on to explain that crypto ETFs open the floodgates for a wider audience of investors who aren’t interested in the complexities of holding ETH themselves but want exposure to one of the top performing assets of the past decade.

“This will potentially lead to an influx of capital, increased credibility, and recognition of digital assets as a key part of any serious investment portfolio,” said Weiss.

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