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- On Tuesday, February 27, the second day for a total of 9 spot Bitcoin
ETFs, trading volumes reached $2 billion, reflecting the ongoing high demand. - Notably, $IBIT set a new personal record with a trading volume of $1.3 billion, surpassing the daily trading volume of most major US stocks.
- While GBTC stands out as the largest and most frequently traded among its competitors, its 1.5% management fee makes it the most expensive option.
Spot Bitcoin ETFs are experiencing massive inflows in response to increased demand for Bitcoin; BlackRock’s Bitcoin ETF stands out!
How Are Things in the Spot Bitcoin ETF Market?
On Tuesday, February 27, the second day for a total of 9 spot Bitcoin ETFs, trading volumes reached $2 billion, reflecting the ongoing high demand. Bloomberg’s ETF strategist Eric Balchunas noted that the significant trading volume of $2 billion exceeded the important threshold for Nine.
Notably, $IBIT set a new personal record with a trading volume of $1.3 billion, surpassing the daily trading volume of most major US stocks. Balchunas wondered whether this increase in volume indicated a new norm or a short-term phenomenon driven by algorithmic trading or arbitrage activities.
Balchunas also determined that BlackRock’s $IBIT conducted more than 100,000 individual trades, significantly higher than the typical 30,000 to 60,000 trades on days before Tuesday. Despite initial speculation that the accumulated demand after the Presidents’ Day weekend might have caused this, trading activity remained high, questioning this theory.
On the other hand, Grayscale Bitcoin ETF GBTC experienced another surge in outflows after slowing down earlier this week. Also on Tuesday, GBTC recorded total outflows of $125 million, bringing the total outflows to over $7.5 billion since the ETF approval last month.
While GBTC stands out as the largest and most frequently traded among its competitors, its 1.5% management fee makes it the most expensive option. In contrast, most of its competitors charge fees below 0.3%, making them more economical alternatives.
BTC Price Movement
After a strong rally on Monday, the price of Bitcoin is currently fluctuating around $59,000. However, on-chain indicators continue to show that whale accumulation has persisted throughout last week.
According to a close analysis by crypto analyst Ali Martinez, a significant amount of Bitcoin (BTC) has been withdrawn from crypto exchanges in the past month, with a total of 76,670 BTC withdrawn in just the last month. This movement represents an amount exceeding 3.45 billion dollars in total value. Martinez emphasized the urgency for investors to secure their Bitcoin holdings before further reducing the existing supply.
The BTC price is stabilizing around $59,000, resisting selling pressure. According to Ali Martinez, if Bitcoin drops to $55,900, there will be approximately $300 million in liquidation across various platforms.