Wed, April 03, 2024 at 08:45

• 

  Kang-hoon

  • Hello Annie.

  • Today, I'd like to discuss the recent surge in trading volume for U.S.-listed Bitcoin exchange-traded funds (ETFs).

  • In March, these ETFs captured over $110 billion in trading volume, which is three times higher than the volumes in January and February.

  • 
• Annie

  • Wow!

  • That's a huge increase.😮 What caused this sudden surge?

  
• 

  Kang-hoon

  • Well, this surge coincides with Bitcoin's price reaching record highs.

  • It climbed to a record $73,000 from around $45,000 when these ETFs started trading on January 12.

• Annie

  • Oh, I see.

  • So, the increase in Bitcoin's price led to more trading of these ETFs?

  
• ADward

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• 

  Kang-hoon

  • Exactly.

  • The leading ETF was BlackRock's IBIT, which comprised almost 50% of the total trading volume.

  • This was followed by Grayscale's GBTC with 20% and Fidelity's FBTC with 17%.

• Annie

  • That's impressive!👏 BlackRock seems to be dominating the market.

  
• 

  Kang-hoon

  • Indeed.

  • In fact, all of BlackRock's volumes have originated from inflows since March 15.

  • As of Tuesday's close, it held over $16 billion worth of Bitcoin.

• Annie

  • Wow, $16 billion!

  • That's a lot of Bitcoin.😲

  
• 

  Kang-hoon

  • Yes, it is.

  • And it's worth noting that a large chunk of BlackRock's volumes come from retail investors, with an average trading size of $13,000.

• Annie

  • So, it's not just institutional investors but also individual investors who are driving this trend.

  
• 

  Kang-hoon

  • That's correct.

  • The market dynamic has shifted from fundamentals to spot ETF performance.

  • It's a fascinating development.

• Annie

  • It sure is!😃 So, is this good news or bad news?

  
• 

  Kang-hoon

  • From an investment perspective, this is good news.

  • The surge in trading volume indicates a growing interest in Bitcoin ETFs, which could lead to further price increases for Bitcoin.

  • 

  • However, as always, investors should be cautious and make informed decisions.

  • Upon comprehensive consideration, this news is perceived as a 😍Bullish.