BlackRock's Bitcoin ETF Hits New High with $720M Daily Volume

BlackRock's Bitcoin ETF, known as the iShares Bitcoin Trust (IBIT), achieved a remarkable milestone with $720 million in daily trading volume on February 14, setting a new record for the fund. This surge in volume positions BlackRock's total assets under management (AUM) to exceed $5 billion, increasing its Bitcoin holdings to approximately 96,669 BTC. Eric Balchunas, an ETF analyst from Bloomberg, highlighted the unexpected resurgence in IBIT's trading activity. He noted that the fund's initial volume was linked to cash inflows and outflows from GBTC, another Bitcoin fund. However, IBIT's recent spike in volume, which Balchunas describes as "breaking loose," deviates from this trend, suggesting a strong and unusual investor interest.

IBIT's trading volume on February 13 was $493 million, attributed entirely to new investments, according to Farside Investors. This contrasts with the Grayscale Bitcoin Trust (GBTC), which experienced $72.8 million in outflows on the same day, indicating a decrease in selling pressure. As of the evening of February 14, GBTC and the Fidelity Wise Origin Bitcoin Fund (FBTC) reported volumes of $681 million and $455 million, respectively. In comparison, the other seven spot Bitcoin ETFs on the market each recorded less than $200 million in daily volume.

BlackRock's IBIT now ranks as the second-largest spot Bitcoin ETF by market cap, competing with some of the largest traditional funds in terms of daily volume. Despite GBTC's higher market cap of $24 billion, it has faced more significant outflows since converting to an ETF in January. Balchunas emphasized that with over $5 billion in AUM, IBIT places in the top 7% of all ETFs in the U.S. by size, a significant achievement considering the fund has been trading for only 23 days. Currently, there are approximately 3,100 ETFs in the U.S. market.