U.S. Spot Bitcoin ETFs Reaches Over $500 Billion in Trading Volume

U.S. spot bitcoin exchange-traded funds (ETFs) surpassed half a trillion dollars in cumulative trading volume on Wednesday, just under a year after their launch.

The trading volume experienced rapid growth since the ETFs began in January, crossing the $100 billion milestone by March and reaching $200 billion by April, coinciding with bitcoin reaching all-time highs nearing $74,000.

Following this explosive growth, the trading volume began to slow during a consolidation phase, with bitcoin stabilizing between $50,000 and $70,000 for several months. This pattern shifted again after Donald Trump’s U.S. presidential election victory on November 6, propelling bitcoin to new all-time highs.

As of yesterday's trading close, cumulative trading volume for U.S. spot bitcoin ETFs hit $505.4 billion according to The Block’s data dashboard. This significant achievement positions these new bitcoin funds against well-established ETF products like the Vanguard S&P 500 ETF (VOO) and the Invesco QQQ Trust (QQQ).

BlackRock’s IBIT Hits Record Daily Trading Volume

The milestone was reached after U.S. spot bitcoin ETFs saw a combined $7.9 billion in trading volume on Wednesday, marking the fourth-largest trading day since launch.

BlackRock’s IBIT spot bitcoin ETF led the charge, achieving a record trading volume of $5.2 billion, followed by Fidelity’s FBTC with $1.2 billion and Grayscale's GBTC with $670 million.

Bloomberg Senior ETF analyst Eric Balchunas noted the unexpected volume surge for IBIT, highlighting that only three other ETFs and eight stocks experienced more trading activity that day. In total, IBIT’s market share increased dramatically from 15% in January to 67% by Wednesday.

Even though the U.S. spot Ethereum ETFs, launched in July, remain less popular, they have seen a boost as well, with a trading volume of $702 million on Wednesday, bringing their cumulative volume to $22.3 billion.

Bitcoin ETFs Attract Over $500 Million in Daily Net Inflows

Alongside the increasing trading volume, U.S. spot bitcoin ETFs observed another day of substantial net inflows, totaling $510.1 million—$2.4 billion in inflows this week alone.

BlackRock’s IBIT led with a net inflow of $230.8 million, while Fidelity’s FBTC and Grayscale’s BTC mini ETF came next, gaining $186.1 million and $61.3 million respectively.

Following six consecutive days of positive flows since Trump's electoral win, bitcoin ETFs have accumulated a total of $4.7 billion, bringing net inflows since launch to $28.3 billion.

IBIT now holds around $41.1 billion in assets, indicating its rapid growth trajectory.

The U.S. spot Ethereum ETFs added $146.9 million in net inflows, led by Fidelity’s FETH and BlackRock’s ETHA. These funds have been on the rise, recovering from earlier outflows.

Bitcoin Price Surges Above $90,000

Bitcoin is currently trading at $90,738 and peaked at over $93,000 on Wednesday. The cryptocurrency has seen a 3.4% increase in the last 24 hours, over 20% in the past week, and a remarkable 115% increase year-to-date.

The GMCI 30 index, which reflects the top 30 cryptocurrencies, saw a nearly 5% rise over the past day, up 22% in the last week, and around 65% in 2024.