Bitcoin exchange-traded funds (ETFs) on the Spot market witnessed a significant milestone on Wednesday, as their collective daily trading volume soared past $1 billion. Leading the pack was BlackRock, showcasing robust performance.
In a recent analysis posted on X, Bloomberg Intelligence analyst James Seyffart underscored BlackRock’s IBIT Bitcoin ETF’s impressive showing, clocking in a daily trading volume of $341.2 million.
This surpassed the $296.5 million volume recorded by the Grayscale Bitcoin Trust, securing BlackRock’s position as the top performer according to Seyffart’s findings.
Fidelity’s FBTC fund claimed the third spot with a trading volume of $200 million. The remaining seven funds collectively contributed $188 million to the daily volume, collectively crossing the billion-dollar threshold for the day.
$1 Billion in Daily Trading Volume is Not Significant
Seyffart pointed out in another post that while surpassing the $1 billion threshold is notable, it may not be deemed a significant milestone for Bitcoin ETFs. He emphasized that although the figure marks an uptick compared to recent days, it still falls short of the volumes seen during the early stages of trading.
In addition to the impressive trading volumes, inflows into spot Bitcoin ETFs continued to outpace outflows from the Grayscale Bitcoin Trust (GBTC) for the ninth consecutive day.
Preliminary data from Farside indicated that GBTC witnessed $81 million in outflows on February 7th, 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 saw an inflow of $56 million, Fidelity’s fund saw an increase of $130 million, and Bitwise recorded inflows of $21 million.
BTC Holdings of Spot ETFs to Exceed MicroStrategy’s Stash
In another indication of the surging popularity of spot Bitcoin ETFs, the combined Bitcoin holdings of the recently launched nine ETFs were poised to surpass 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,” remarked investor and author Fred Krueger in a post.
As of February 7th, the ETF funds held approximately 187,000 BTC, while MicroStrategy possessed 190,000 coins. MicroStrategy had acquired an additional 850 BTC in January, bringing its total holdings to a value exceeding $8 billion.
“ETFs are eating the world. They’ve devoured every other asset class, and now they’re having Bitcoin for dessert.”
As reported, BlackRock and Fidelity’s spot Bitcoin ETFs have emerged as part of 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.
However, during the trading days from January 26th to February 2nd, the inflows into the new spot Bitcoin funds surpassed the outflows from GBTC. GBTC experienced its second-lowest outflow day on February 2nd, amounting to $144.6 million.