Spot Bitcoin ETFs Record Trading Volume in A High Price For BTC

On March 5, U.S.-based Bitcoin ETFs experienced a remarkable surge in trading volume, reaching $10 billion, surpassing the previous week's record of $7.7 billion.

Source: www.sozcu.com.tr

On March 5, U.S.-based spot Bitcoin exchange-traded funds (ETFs) witnessed an unprecedented trading volume of $10 billion. This surge occurred as Bitcoin reached a new all-time high before experiencing a sudden decline of around 12% within the next five hours. Bloomberg ETF analyst Eric Balchunas remarked on these remarkable figures, stating they were extraordinary for ETFs that are less than two months old. 

Bitcoin analyst Alessandro Ottaviani reported a slightly lower trading volume of $9.58 billion for the funds, still surpassing the previous record of $7.7 billion set on Feb. 28. Among the funds, BlackRock’s iShares Bitcoin ETF (IBIT) led in volume with $3.7 billion, followed by the Grayscale Bitcoin Trust (GBTC) and the Fidelity Wise Origin Bitcoin Fund (FBTC) with $2.8 billion and $2 billion respectively according to Ottaviani’s data. Throughout the U.S. trading day, Bitcoin experienced significant price fluctuations, reaching a new all-time high of $69,200 around 3:00 pm UTC on March 5. However, it subsequently declined by 12% to a low of $60,860 approximately five hours later. As of the current writing, Bitcoin has partially recovered to $63,350. 

In a March 5 post, pseudonymous analyst Bit Paine humorously remarked to newcomers to Bitcoin via ETFs that the price swing was a monthly ritual during bull markets aimed at flushing out leveraged degenerates. “You are not accustomed to this. In your markets, the government intervenes to halt trading and bail you out if your boomer stocks drop more than 10% in a day, they commented.” Balchunas acknowledged the point, stating, “You have a valid argument. We do have limit up and limit down rules in place, along with the Fed to provide protection against such occurrences.”

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