The price of Bitcoin (BTC) has risen more than 10 percent over the past day to an all-time high of over $57,000, marking its highest price since December 1, 2022. The spot launched last month Exchange-traded funds (ETFs) were the main trigger for the sudden price explosion.
The stock market funds had an extremely successful day with a significant capital inflow and record-breaking trading volume.
$520 million BTC inflow
According to BitMEX Research, a total of $519.8 million flowed into the ten spot ETFs for Bitcoin yesterday. knowledge on social media platform
It’s the fourth-best trading day for all Bitcoin ETFs combined since the funds went public on Jan. 11.
A closer look at the data also suggests that Grayscale’s GBTC, which was a closed-end fund before approval, is having its “best” day yet.
Since switching to a spot ETF, the fund has seen significant daily outflows, but yesterday saw its lowest net outflow to date at $22.4 million.
New trading volume record for Bitcoin ETFs, BlackRock leads the way
Yesterday the funds recorded the highest trading activity since their mass launch on January 11th.
Bloomberg ETF analyst Eric Balchunas dumped his more than 242,000 X followers yesterday knowledge that the nine new Bitcoin ETFs, excluding the Grayscale fund, have set a new record with a combined trading volume of $2.4 billion.
This narrowly exceeded the previous record from the first day of trading. On its debut day, volume reached $2.2 billion.
BlackRock, which has by far the most collateral for its Bitcoin ETF with a holding of more than 130,000 Bitcoins, prevailed yesterday with a trading volume of no less than $1.3 billion, exceeding its own daily record by around 30 percent .
James Seyffart, ETF analyst at Bloomberg noticed Yesterday also noted that when taking into account inflows from Grayscale’s GBTC fund, it was the second largest trading day with a total volume of $3.2 billion.
James Butterfill, chief research officer at CoinShares, suspects the huge volume is due to some quant funds conducting “high-frequency intraday trades.”
In high-frequency trading, investment banks, hedge funds, and institutional investors use computers—using algorithms—to execute extremely high numbers of trades at very high speeds.
