US exchange-traded funds (ETFs) have surpassed $200 billion in cumulative trading volume since their launch just three months ago.
Only in: 🇺🇸 United States #Bitcoin Spot ETF trading volume exceeds $200 billion in just 3 months.
Asia is next 🚀 pic.twitter.com/VxQdQJEIjN
— Bitcoin Magazine (@BitcoinMagazine) April 10, 2024
According to data from The Block, the total volume of SEC-approved funds crossed the $200 billion mark on Tuesday. This comes after spot bitcoin ETFs saw record monthly volume of $111 billion in March, three times February's volume.
ETFs debuted on January 11 when Bitcoin traded at around $45,000. Since then, Bitcoin has risen to an all-time high above $73,000, sparking increased interest and trading activity.
Leading the way in volumes is BlackRock's IBIT, which now holds more than 265,000 bitcoins worth more than $18 billion. IBIT comprises approximately 50% of the total volume of spot ETFs. Meanwhile, Grayscale's GBTC and Fidelity's FBTC rank second and third in terms of market share.
The success of spot bitcoin ETFs in the US has led to applications in other markets such as Hong Kong. Regulators there are expected to approve Asia's first bitcoin ETFs this month, which could add more volume.
ETF providers point to growing institutional demand for exposure to regulated bitcoin. Funds represent an easy way for both individual and professional investors to gain exposure to the price of Bitcoin.
The cumulative volume of $200 billion indicates Bitcoin's increasing maturity since the last bull run when ETF hopes were repeatedly dashed.
The growth of Bitcoin ETFs indicates the widening adoption of traditional finance, a mainstream integration that is likely to continue as the asset class evolves.
