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Trading Like Hot Cakes: Bitcoin ETF Volume Sets the Record by Surpassing $7.7 Billion

ETF puts up a historic trading volume while the market continues to rally

U.S.-based Bitcoin Exchange-Traded Funds (ETFs) shattered records by achieving a staggering $10 billion in trading volume on March 5, eclipsing the previous week's benchmark of $7.7 billion. This significant achievement coincided with Bitcoin hitting a new all-time high; Bloomberg ETF analyst Eric Balchunas highlighted the significance of these numbers, especially considering the ETFs' recent debut. 

Balchunas remarked on March 5, capturing the market's astonishment at the rapid acceptance and activity surrounding these financial instruments:

"These are bananas numbers for ETFs under [two months] old," 

Alessandro Ottaviani, a Bitcoin analyst, confirmed a slightly lower, yet formidable, trading volume of $9.58 billion for the same period, still outpacing the prior record. Notably, BlackRock's iShares Bitcoin ETF led the charge with $3.7 billion in trading, followed closely by Grayscale Bitcoin Trust and the Fidelity Wise Origin Bitcoin Fund, with $2.8 billion and $2 billion in trading volumes, respectively.

Price fluctuations and market reactions

The cryptocurrency market witnessed dramatic price movements throughout the U.S. trading day on March 5. Bitcoin's value reached a new pinnacle at $69,200 around 3:00 pm UTC, only to descend sharply by 12% to $60,860 within the next five hours. This volatility reflects the inherent unpredictability of cryptocurrency markets, where significant swings can occur in short periods. 

The recovery of Bitcoin's price to $67,100 underscores the resilience and dynamic nature of digital currencies. 

The iShares Bitcoin ETF (IBIT) and the Fidelity Wise Origin Bitcoin Fund (FBTC) both experienced a decline of approximately 8.6% on the same day, mirroring the broader market's fluctuations. This event prompted commentary from analysts, including a pseudonymous figure, Bit Paine, who humorously remarked on the volatility as a

 "monthly ritual during bull markets,"

Bloomberg's Eric Balchunas responded, noting the contrast with traditional markets protected by regulatory mechanisms, highlighting the unique challenges and opportunities within the cryptocurrency space.