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Bitcoin ETFs Traded Staggering $111 Billion in March

source-logo  u.today 02 April 2024 17:00, UTC

According to analyst Eric Balchunas, Bitcoin exchange-traded funds managed to trade a staggering $111 billion in March.

These products managed to triple their volumes from February and January.

Balchunas does not believe that these products will manage to record ever bigger volumes this April, but he does not rule anything out.

As reported by U.Today, the Bitcoin price collapsed earlier today after spot ETFs once again recorded outflows. Grayscale's GBTC bled as much as $302 million in a single day on Apr. 1.

Waning ETF demand appears to be the main bearish catalyst behind the recent plunge.

Last March, the largest cryptocurrency managed to surge to its current all-time high of $73,737 due to strong ETF demand. However, it has since faced multiple corrections.

After reaching $10 billion in assets under management in mere weeks, BlackRock's IBIT continues to attract inflows, but they are relatively modest compared to early March.

Will there be a spot Ethereum ETF?

The approval of several Bitcoin ETFs injected renewed optimism into the cryptocurrency market. Hence, many had high hopes that the U.S. Securities and Exchange Commission would also greenlight an Ethereum ETF this year.

However, as of now, Ethereum ETF approval prospects look extremely grim. As reported by U.Today, Balchunas, Bloomberg's senior ETF analyst, recently opined that such a product had a mere 25% approval chance even though he personally would want to see being greenlit by the regulator.

Despite heavyweights of the likes of BlackRock launching an effort to introduce such a product, the SEC is in no rush to approve an Ethereum ETF due to political pressure and concerns about market volatility.