In a development, in the world of cryptocurrency the trading volume of spot Bitcoin exchange traded funds (ETFs) saw an increase in March reaching an impressive $111 billion. This surge marked a growth from the $42.2 billion recorded in February indicating triple the trading activity within just one month. The standout performers in this growing sector were the ETFs managed by Grayscale and BlackRock leading the market in terms of volume.
The data, highlighted by ETF analyst Eric Balchunas demonstrates the performance of spot Bitcoin ETFs in March compared to February. The substantial uptick in trading volume reflects increasing investor interest in these products that entered the market on January 11. This trend is especially noteworthy as it represents the month of trading for these Bitcoin investment products showing a positive reception, from the market.
At the forefront of ETF offerings is BlackRocks Bitcoin ETF called IBIT, which has established itself as a leading player in terms of trading volume. Close are Grayscales GBTC and Fidelitys FBTC each capturing market shares.
The competitive landscape was explained in detail by Balchunas using a chart, from fellow analyst James Seyffart. The chart showed how IBIT has become increasingly dominant even surpassing GBTC in market share.
However at the beginning of April there was a scenario. Cumulative spot Bitcoin ETFs experienced outflows totaling $86 million according to data from Farside Investors. Despite this BlackRocks IBIT saw an inflow of $165.9 million, which starkly contrasted with Grayscales outflows amounting to $302.6 million.
Fidelitys FBTC attracted the inflows at $44 million on the same date while ARK Invest 21Shares ETF (ARKB) faced minor outflows for the first time since its inception. Notably BlackRock and Fidelitys spot Bitcoin ETFs have accumulated around $18 billion and $10 billion in assets under management respectively showcasing their success in drawing inflows.
On the hand Grayscales GBTC has been facing challenges with total outflows exceeding $15 billion after experiencing over $300 million in outflows on April 1st. This has resulted in a 46% decrease in GBTCs assets, under management now standing at $22 million as reported by Coinglass.
The increase, in trading activity for spot Bitcoin ETFs and the changing landscape of market ownership and fund sizes highlight the influence these financial tools are exerting on the Bitcoin market.
As the market experiences a surge to reach record levels in March and with excitement building up for the halving of Bitcoin supply, which is just around the corner in less than 20 days investors are closely monitoring the latest developments, in this industry.
