- The trading volumes of Bitcoin ETFs introduced this week have been experiencing an extraordinary increase, reaching new milestones every day.
- Eric Balchunas, a renowned ETF strategist at Bloomberg, disclosed notable figures for the New Nine ETF, indicating that their volume records have doubled.
- BlackRock’s leading $IBIT witnessed a trading volume of $3.3 billion, and Fidelity recorded $1.4 billion, both doubling their previous records.
On the day Bitcoin reached $64,000, spot Bitcoin ETFs recorded massive trading volumes: Here’s the current state of the ETF market!
Spot Bitcoin ETFs Breaking Volume Records
The trading volumes of Bitcoin ETFs introduced this week have experienced an extraordinary increase, reaching new milestones every day. Especially on Wednesday, February 28th, the collective daily trading volume of all nine Bitcoin ETFs saw a surprising 100% increase.
Eric Balchunas, a renowned ETF strategist at Bloomberg, revealed significant figures for the New Nine ETF, showing that their volume records doubled. Approximately $6 billion in transactions were conducted, surpassing the record they broke the day before.
Leading BlackRock’s $IBIT saw a trading volume of $3.3 billion, and Fidelity recorded $1.4 billion, both doubling their previous records. The total number of transactions also doubled, with individual transactions exceeding half a million.
Furthermore, when $GBTC is included, ETFs broke their old record and reached an almost $8 billion trading volume. When Bitcoin futures ETFs like $BITO are also included, the total trading volume, known as the Bitcoin ETF Complex, surpassed $10 billion. Balchunas highlighted the trajectory since the launch of $BITO in 2021.
In discussions with market makers, Balchunas noted that this increase in volume is more likely due to algorithmic or arbitrage-focused trading than fundamental demand. It is reported that wirehouse platforms are considering adding these ETFs to their offerings, and there is an increasing pressure to do so. These platforms usually seek an established track record and incentive, but the growing retail demand could expedite this process.
Bitcoin’s price reached $64,000 on Wednesday before slowing down a bit. Bitcoin’s trading volume also surged by 116% in the last 24 hours, reaching $88 billion. If this enthusiasm continues, a new all-time high for Bitcoin may not be far away.
Morgan Stanley to Add BTC ETF Products
Informed sources stated that banking giant Morgan Stanley is exploring the possibility of integrating spot Bitcoin ETF products into its brokerage platform. This move is a potential step for Morgan Stanley, a major U.S. brokerage platform, to offer spot Bitcoin ETFs to its customers after the SEC approved such products in January.
While significant investments have already been made in these products, widespread adoption could depend on the availability of these products through large registered investment advisor (RIA) networks and brokerage platforms owned by major firms such as Merrill Lynch, Morgan Stanley, and Wells Fargo.
Morgan Stanley has a strong reputation in alternative investments and private markets, with assets exceeding $150 billion. It also holds the distinction of being the first major U.S. bank to offer exposure to Bitcoin to its wealthy clients.
In 2021, the bank made headlines for becoming the first major U.S. bank to offer exposure to Bitcoin funds to wealth management clients. This move was confirmed in a first-quarter earnings call in April 2021, announcing accessibility to Bitcoin through external crypto funds.
