U.S. Bitcoin ETF trading volume surpasses $750 billion
New record
Just over a year after their launch in January 2024, U.S. spot Bitcoin ETFs have surpassed $750 billion in cumulative trading volume.
According to The Block, Bitcoin ETF trading volume grew rapidly after launch, reaching $100 billion by March 2024 and $200 billion by April, when Bitcoin hit an all-time high of around $74,000. However, activity slowed afterward as the crypto market cooled, with Bitcoin trading within a range of $50,000–$70,000 for the following seven months.
The situation changed after Donald Trump’s pro-crypto victory in the U.S. presidential election, which triggered a breakout in Bitcoin's price. The cryptocurrency surged past previous consolidation levels, reaching new all-time highs, and Bitcoin ETFs surpassed $500 billion in total trading volume just a week later.
By the end of trading on Thursday, cumulative trading volume for U.S. spot Bitcoin ETFs reached $753.2 billion. While growth has slowed, this milestone highlights the increasing significance of Bitcoin ETFs, which are now competing with major traditional ETFs, including the Vanguard S&P 500 ETF (VOO) and the Invesco QQQ Trust (QQQ).
Meanwhile, spot Ethereum ETFs, launched in July 2024, have so far generated $55.5 billion in total trading volume.
BlackRock’s IBIT Strengthens Market Dominance
BlackRock’s IBIT has emerged as the dominant player among U.S. spot Bitcoin ETFs. Initially holding a 25% market share, IBIT has expanded its dominance, reaching 75% of the market by February 20.
Total assets under management (AUM) for spot Bitcoin ETFs have now exceeded $112 billion, with BlackRock’s IBIT alone accounting for $56 billion.
Since launch, spot Bitcoin ETFs have attracted $39.8 billion in cumulative net inflows. However, recent weeks have seen $886 million in net outflows this month alone, including $365 million in a single day on Thursday, as Bitcoin’s price experiences volatility.
In contrast, Ethereum ETFs, while attracting just $3.2 billion since launch, have outperformed Bitcoin ETFs this month, recording $404 million in net inflows over the past few weeks.
Large investors are reallocating assets, resulting in capital outflows from Bitcoin ETFs while Ethereum ETFs remain more stable.
“Bitcoin ETF outflows continue to rise, with $365 million withdrawn yesterday, whereas Ethereum saw only $13 million in outflows. This divergence in institutional flows may indicate a potential trend reversal once market sentiment improves,” said BRN analyst Valentin Fournier.
Despite declining trading volumes and low volatility, the overall market outlook remains positive. Bitcoin recently broke out of its $94,000–$98,000 range, and as institutional outflows slow over the weekend, analysts anticipate further growth.
Meanwhile, the SEC is reviewing 21Shares’ proposal regarding Ethereum ETF staking mechanisms.
