Spot Bitcoin ETFs played a crucial role in propelling the bull run in March, resulting in a new all-time high for Bitcoin. Data from on-chain sources revealed that the trading volume for spot Bitcoin Exchange-Traded Funds (ETFs) surged by $111 billion in March. This surge nearly tripled the trading volume seen in February, solidifying the bullish sentiment amid significant institutional interest.
Spot Bitcoin ETF Trading Volume Reaches $185 Billion
The remarkable increase in Bitcoin's price in March, leading to a new all-time high, was primarily driven by the substantial inflows into ETFs. Consequently, data related to spot Bitcoin ETFs in March showed positive outcomes.
The trading volume for spot Bitcoin ETFs skyrocketed to an impressive $111 billion in March, nearly tripling the $42.2 billion recorded in February. This data, displayed on The Block Data Dashboard, demonstrates the growing institutional interest in Bitcoin.
Eric Balchunas, a Senior ETF Analyst at Bloomberg, highlighted the significance of the surge in trading volume on social media.
The trio of spot ETFs from Grayscale, BlackRock, and Fidelity continued to lead in trading activity. Despite this, there was a notable total outflow of over $15 billion from Grayscale's GBTC fund. The transformation of the GBTC fund into a spot Bitcoin ETF saw a decrease of 46% in Bitcoin holdings.
Spot Bitcoin ETF Sentiment Precedes Halving Event
On another note, spot Bitcoin ETFs experienced withdrawals as Bitcoin's price dropped below $67,000. Analysis revealed significant outflows from Grayscale's Bitcoin ETF on the same day. While total net withdrawals from Bitcoin spot ETFs reached $85.84 million, BlackRock's ETF saw an increase of $165 million, and Fidelity's ETF had a net addition of $43.99 million.
As concerns arise about the stability of April's ETF inflows, analysts anticipate that a drop in Bitcoin's price may not negatively impact ETF figures. This situation could lead to a price rebound in the near future, attracting interest from institutional and retail investors alike.
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