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The Battle for ETF Trading Volume: BlackRock is Kicking A** and Taking Names While Crypto Market Corrects

As the market turns red, BlackRock's Bitcoin ETF sets a record in daily trading volume 

BlackRock's Bitcoin exchange-traded fund (ETF), IBIT, saw its trading activity surge on Thursday, reaching a record high. Almost 100 million shares were exchanged, marking a significant achievement for the fund, also highlighting the investors’ growing interest in cryptocurrency funds, even amidst the bearish market volatility.

The record-setting day coincided with a notable 6% drop from Bitcoin's daily high during the U.S. trading hours, illustrating the dynamic nature of the cryptocurrency market. Despite this decline, BTC showed resilience, beginning to recoup its losses shortly thereafter. 

BlackRock's foray into Bitcoin ETFs has been met with enthusiasm, with the IBIT standing out as the top-performing fund by volume and net inflows among the ten new ETFs launched in January. This achievement was highlighted by a record net inflow day on March 12, seeing $849 million of flows, the largest for any Bitcoin fund to date.

Eric Balchunas, a Bloomberg ETF analyst, shared insights on the remarkable performance of the new ETFs, noting that the combined monthly trading volumes of the ten ETFs have already surpassed previous months' figures halfway through March. The ETFs have accumulated $65 billion in volume this month, significantly outpacing the approximately $42 billion recorded in February.

Unprecedented growth and investor interest in Bitcoin ETFs

The Grayscale Bitcoin Trust (GBTC), despite its significant market presence, now trails BlackRock's iShares Bitcoin Trust (IBIT) in daily trading volumes, with GBTC's volume reaching $1.96 billion on March 14, compared to IBIT's record $3.9 billion. Eric Balchunas, a Bloomberg ETF analyst, highlighted the competitive performance of these funds on X (formerly Twitter), stating:

"Despite the month being halfway over, the ten ETFs' combined monthly trading volumes have already smashed the numbers from prior months."

Such financial movements illustrate the growing confidence and interest among investors toward Bitcoin as an investable asset, amidst a market that remains as volatile as ever. Bitcoin itself witnessed a rollercoaster, hitting an intra-day high of over $73,500 before retracting 6.3% to a low of $68,800 by the close of the U.S. trading day.