In a remarkable turn of events, BlackRock’s iShares Bitcoin Trust (IBIT) has emerged as the top-performing spot BTC ETF, surpassing a record-breaking daily volume of $720 million on February 14, according to data from Coinglass.
The daily volume for BlackRock’s Spot BTC ETF reached a record high of $720 million on February 14, according to data from Coinglass.
BlackRock’s Spot Bitcoin ETF, known as IBIT, recently experienced a surge in trading volume. Bloomberg ETF analyst Eric Balchunas highlighted the “more unusual second wind strength” observed in IBIT’s recent performance. Balchunas noted that IBIT’s early volume was connected to GBTC outflows, but the trend took an unexpected turn, gaining momentum independently.
IBIT’s daily volume hit $493 million on February 13, with the entirety attributed to inflows, marking a consistent rise after hitting a record low on February 6, as reported by Farside Investors’ data.
Comparatively, Grayscale Bitcoin Trust (GBTC) experienced $72.8 million in outflows on February 13, signalling a significant slowdown in sell pressure compared to previous months.
Market Dynamics and Rankings
At 9:27 pm UTC on February 14, Coinglass reported GBTC at $681 million in volume, while the Fidelity Wise Origin Bitcoin Fund (FBTC) stood at $455 million. Notably, BlackRock’s IBIT is now the second-largest spot Bitcoin ETF by market cap, poised to surpass $5 billion in total inflows, securing a position among the top 7% of all ETFs by size in just 23 trading days.
Bitcoin Hoard and Competing Funds
BlackRock’s total Bitcoin hoard is set to exceed 96,669 BTC, with FBTC trailing closely with total inflows just shy of $4 billion. In the market, IBIT competes with some of the largest traditional funds in daily volume, showcasing its rapid ascent in the ETF landscape.
A Rapid Ascent in the ETF Landscape
In just over three weeks, BlackRock’s IBIT has secured its position among the top-performing ETFs, underscoring the growing interest in Bitcoin-related investment products. The recent surge in daily volume and total inflows positions IBIT as a formidable player, exemplifying the dynamic nature of the cryptocurrency market and its integration into traditional financial instruments.
Cathie Wood’s Forecast on US Crypto ETFs
Ark Invest’s CEO, Cathie Wood, has weighed in on the future of crypto exchange-traded funds (ETFs) in the United States. In a recent interview with WSJ’s Take On The Week podcast, Wood expressed her belief that the Securities and Exchange Commission (SEC) is likely to approve only Bitcoin and Ethereum spot ETFs. According to Wood, these two cryptocurrencies, holding the highest market cap, stand a better chance of gaining regulatory approval.
SEC’s Favoritism Towards Bitcoin and Ethereum
Wood’s prediction aligns with the sentiment shared by industry experts, emphasizing that the SEC’s blessings may be reserved for Bitcoin and Ether. The regulatory hurdle seems particularly steep for altcoins like XRP, with experts, including Steven McClurg of Valkyrie Investments, suggesting that the SEC may remain cautious about approving ETFs linked to tokens other than Bitcoin and Ethereum.
Ark Invest’s Role and Limited Scope
Ark Invest, under Wood’s leadership, is already an issuer of the existing Spot Bitcoin ETFs (ARK 21 Shares Bitcoin ETF). Wood’s firm has also submitted an application to the SEC for a Spot Ethereum ETF. However, Wood’s recent comments hint at the unlikelihood of Ark Invest filing for ETFs associated with other cryptocurrencies.
While the SEC is yet to give its nod to Spot Ethereum ETFs, industry insiders remain optimistic. The approval of Spot Bitcoin ETFs has set a precedent, and Bitwise’s Chief Investment Officer, during a panel discussion at the Exchange ETF conference, suggested that an Ethereum ETF approval is probable shortly.
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