For the second consecutive day on Tuesday, February 27, buying and selling volumes for all nine spot Bitcoin ETFs mixed reached $2 billion, reflecting sustained peak demand.
Bitcoin ETFs Trading Volumes Soar
Bloomberg’s ETF strategist Eric Balchunas famous one other day of great buying and selling quantity for the Nine, surpassing $2 billion. Notably, $IBIT set a brand new private report with $1.3 billion in buying and selling quantity, exceeding the each day commerce quantity of most large-cap US shares. Balchunas contemplated whether or not this surge in quantity is indicative of a brand new regular or a short-term phenomenon pushed by algorithmic buying and selling or arbitrage actions.
Another intense quantity day for the Nine with effectively over $2b traded. $IBIT broke its private report once more w/ $1.3b (for context that is greater than most massive cap US shares commerce). I do not know if this can be a new regular or some type of short-term algo/arb-related burst a la $HODL. pic.twitter.com/KkCkdQKe9r
— Eric Balchunas (@EricBalchunas) February 27, 2024
Additionally, Balchunas discovered it noteworthy that BlackRock’s $IBIT skilled over 100,000 particular person trades, a considerable improve from its typical buying and selling exercise of 30,000 to 60,000 trades per day main as much as Tuesday. Despite preliminary hypothesis that the surge in quantity was resulting from pent-up demand following the Presidents Day weekend, buying and selling exercise remained elevated, difficult this idea.
On the opposite hand, the Grayscale Bitcoin ETF GBTC has as soon as once more witnessed a surge in outflows after slowing down earlier this week. Also, on Tuesday, GBTC recorded $125 million in complete outflows taking the overall determine of outflows to over $7.5 billion ever because the ETF approval final month.
Although GBTC stands out as the most important and most steadily traded amongst its counterparts, its administration payment of 1.5% renders it the costliest possibility out there. In distinction, the vast majority of its friends charge fees under 0.3%, making them extra economical options.
BTC Price Action
After a robust rally earlier on Monday, the Bitcoin value is hovering near $57,000 as of now. However, on-chain indicators proceed to indicate energy as whale accumulation continues over the previous week.
In a latest evaluation, crypto analyst Ali Martinez revealed a major outflow of Bitcoin (BTC) from cryptocurrency exchanges, with a staggering 76,670 BTC withdrawn up to now month alone. This motion quantities to a complete worth exceeding $3.45 billion. Martinez emphasised the urgency for traders to safe their share of Bitcoin earlier than the out there provide diminishes additional.
The BTC value has remained regular at round $57,000 not giving as much as the promoting strain. Ali Martinez estimates that roughly $300 million in liquidations will happen throughout varied platforms if Bitcoin experiences a decline to $55,900.
Around $300 million can be liquidated throughout the board if #Bitcoin drops to $55,900! pic.twitter.com/GSuNue0beo
— Ali (@ali_charts) February 27, 2024
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