Tripled Trading Volume: Bitcoin ETF Hits $111B in March

The trading volume of spot Bitcoin exchange-traded funds (ETFs) experienced a significant increase in March, reaching $111 billion. This was almost three times the volume recorded in February, with Grayscale and BlackRock dominating the market. Bloomberg ETF analyst Eric Balchunas shared data showing that the trading volume of spot Bitcoin ETFs reached $111 billion in March, compared to $42.2 billion in February. It is worth noting that February marked the first full month of trading for these Bitcoin investment products, which made their market debut on January 11. This strong performance in March further indicates a growing interest in spot Bitcoin ETFs.

BlackRock’s IBIT ETF continues to dominate the market share, followed by Grayscale’s GBTC and Fidelity’s FBTC. Balchunas acknowledged this in a post, sharing a chart by analyst James Seyffart that shows IBIT’s increasing dominance as it surpasses GBTC in market share. He stated, “While all of the ETFs had profitable hits, $IBIT won the volume race and is officially the $GLD of Bitcoin.”

On April 1, cumulative spot Bitcoin ETFs recorded net outflows of $86 million. Data from Farside Investors showed that BlackRock’s IBIT ETF had inflows of $165.9 million, which were overshadowed by Grayscale’s $302.6 million in outflows. Fidelity’s FBTC had the second highest inflows of $44 million, while ARK Invest 21Shares ETF ARKB experienced its first outflows of $300,000 since it began trading on January 11.

BlackRock and Fidelity’s spot Bitcoin ETFs reached approximately $18 billion and $10 billion, respectively, in assets under management last month, making them the most successful in terms of inflows. In contrast, Grayscale’s GBTC has seen over $15 billion in total outflows, including the over $300 million outflows recorded on April 1. According to data from Coinglass, GBTC’s assets under management have dropped by 46% to $22 million.

The introduction of spot Bitcoin ETFs has had a significant impact on the BTC markets, contributing to new all-time highs in March. Market participants anticipate a different cycle combining the success of the ETFs with the upcoming Bitcoin supply halving, which is now less than 20 days away.