As of the newest knowledge, the US spot Bitcoin Exchange-Traded Funds (ETFs) have surged previous a notable milestone, with cumulative buying and selling quantity breaching the $150 billion mark on March 19.
This improvement is especially noteworthy contemplating the spot ETFs‘ comparatively brief interval available in the market, following their approval by the Securities and Exchange Commission (SEC) lower than three months in the past.
However, regardless of this milestone, the market has not been with out its challenges. Record web outflows had been additionally noticed amid a notable dip in Bitcoin’s value yesterday.
Record Trading Volumes And Market Dynamics
The achievement of surpassing $150 billion in cumulative buying and selling volumes for US spot BTC ETFs displays a major curiosity and participation within the cryptocurrency market. Notably, a considerable portion of this quantity was recorded in a comparatively brief span, with $50 billion added since March 8 alone.
Additionally, yesterday alone, buying and selling volumes reached $5.6 billion, led by BlackRock’s IBIT, Grayscale’s GBTC, and Fidelity’s FBTC, highlighting the energetic engagement of buyers with these monetary devices.
However, this enthusiasm has been tempered by a major market shift, with Grayscale’s GBTC experiencing a “squeeze” in market share amid each day outflows.
Conversely, BlackRock’s IBIT has emerged as a major beneficiary, witnessing a considerable enhance in market share from 22.1% as of inception to 45.2%.
Record Bitcoin Spot ETFs Outflows And Vulnerabilities
The cryptocurrency market’s inherent volatility was underscored by the online outflow of $326.2 million from US spot Bitcoin ETFs, which greater than doubled the earlier document of $158.4 million set earlier within the yr.
Bitcoin ETF Flow – 19 March 2024
All knowledge in. Record web outflow of $326m pic.twitter.com/iBmBiMR74Z
— BitMEX Research (@BitMEXResearch) March 20, 2024
This outflow, notably evident in Grayscale’s GBTC, which noticed important withdrawals, factors to investor warning amidst fluctuating market situations.
Grayscale Bitcoin Trust w/ most outflows of *any* ETF since March 2009 inventory market low…
Only took 2 months.
by way of @Todd_Sohn pic.twitter.com/vX6dtcd6sR
— Nate Geraci (@NateGeraci) March 19, 2024
Amid this improvement, Peter Schiff has critiqued spot Bitcoin ETFs, highlighting a major disadvantage: their liquidity is confined to the operational hours of the US market.
Schiff highlighted that this limitation signifies that within the occasion of a market downturn exterior these hours, buyers can’t promote their holdings till the US market resumes buying and selling, leaving them in a “helpless” place to react to in a single day market actions.
One downside with proudly owning #Bitcoin in an ETF is that liquidity is proscribed to U.S. market hours. So if the market crashes in a single day, you haven’t any potential to promote till the U.S. market opens for buying and selling within the morning. Very irritating to look at helplessly with no potential to get out.
— Peter Schiff (@PeterSchiff) March 19, 2024
Featured picture from Unsplash, Chart from TradingView