On February 28, US Spot Bitcoin Exchange-traded funds (ETFs) marked a significant milestone by achieving record-breaking daily trading volume, surpassing their previous records by more than one-and-a-half times. Data compiled by Bloomberg ETF analyst James Seyffart revealed that the total trading volume across the 10 ETFs amounted to $7.69 billion on that day, eclipsing the previous record of $4.66 billion set on the fund's launch day on January 11.
BlackRock's iShares Bitcoin ETF (IBIT) led the charge, contributing 43.5% to the total trading volume with a staggering $3.35 billion. This figure represented a doubling of its previous single-day record and was roughly equivalent to the combined trading volume of all 10 ETFs on the day before, February 27. Grayscale Bitcoin Trust (GBTC) secured the second spot with a trading volume of $1.86 billion, while Fidelity Wise Origin Bitcoin Fund (FBTC) ranked third with $1.44 billion, marking a significant uptick from its previous volume record.
The trading frenzy was fueled by Bitcoin's surge of more than 10%, propelling it to a more than two-year high of $64,000. Although the price retraced to around $60,000, it recovered slightly to over $62,000 at the time of reporting. The surge in trading volume coincided with heightened investor interest in Bitcoin, with market makers reporting that the volume was primarily driven by "natural demand" rather than algorithmic or arbitrage-driven trading.
Bloomberg analyst Eric Balchunas noted that nine new ETFs, excluding Grayscale, surpassed their previous volume records within half a trading day, underscoring the robust demand for Bitcoin exposure through ETFs. By the end of the trading session, the combined volume of these ETFs had doubled to approximately $5.8 billion, accompanied by over 500,000 individual transactions.
Despite the record-breaking trading activity, GBTC experienced a net outflow of $216.4 million on February 28, marking its highest one-day outflow since January 30 and the highest outflow recorded in February so far. This dynamic suggests a potential shift in investor sentiment or portfolio rebalancing strategies amid Bitcoin's price volatility and the evolving landscape of cryptocurrency investment options.
