Bitcoin Spot ETFs Hits $150 Billion Trading Volume Milestone Amid Market Mayhem — What’s Next?

Record Trading Volumes And Market Dynamics
The achievement of surpassing $150 billion in cumulative trading volumes for US spot BTC ETFs reflects a significant interest and participation in the cryptocurrency market. Notably, a substantial portion of this volume was recorded in a relatively short span, with $50 billion added since March 8 alone.

Additionally, yesterday alone, trading volumes reached $5.6 billion, led by BlackRock’s IBIT, Grayscale’s GBTC, and Fidelity’s FBTC, highlighting the active engagement of investors with these financial instruments.

However, this enthusiasm has been tempered by a significant market shift, with Grayscale’s GBTC experiencing a “squeeze” in market share amid daily outflows.

Conversely, BlackRock’s IBIT has emerged as a primary beneficiary, witnessing a substantial increase 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 net outflow of $326.2 million from US spot Bitcoin ETFs, which more than doubled the previous record of $158.4 million set earlier in the year.

This outflow, particularly evident in Grayscale’s GBTC, which saw significant withdrawals, points to investor caution amidst fluctuating market conditions.

Schiff highlighted that this limitation means that in the event of a market downturn outside these hours, investors cannot sell their holdings until the US market resumes trading, leaving them in a “helpless” position to react to overnight market movements.

One problem with owning #Bitcoin in an ETF is that liquidity is limited to U.S. market hours. So if the market crashes overnight, you have no ability to sell until the U.S. market opens for trading in the morning. Very frustrating to watch helplessly with no ability to get out.

— Peter Schiff (@PeterSchiff) March 19, 2024