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Spot Bitcoin ETFs drove $8B in trade volume and received $637M worth of inflows on Feb. 28.<\/p>\n
The crypto markets are experiencing extreme volatility, with Bitcoin posting a violent pull-back after rallying to new year-to-date highs.<\/p>\n
Bitcoin briefly traded a local high of $63,637 on Feb. 28, coming just 6% shy of its previous all-time high and comprising the only time the leading cryptocurrency has traded above $63,000 excluding October and November of 2021, according to CoinGecko.<\/p>\n
However, the markets quickly rejected the new highs, with MacroCRG, an ambassador for Vertex Protocol, flagging that\u00a0 $1.6B<\/a>\u00a0worth of open interest was wiped from Bitcoin derivatives in just 15 minutes as the price of BTC topped out. According to CoinGlass, there is now almost\u00a0 $27B<\/a>\u00a0worth of open interest in Bitcoin.<\/p>\n BTC is now trading for $62,930 after steadily regaining ground in recent hours, comprising a 22% gain over the past 24 hours and 135% since slumping to a local low of $26,840 in mid-October.<\/p>\n <\/p>\n Ether also rallied 18.5% in the last 24 hours, last changing hands for $3,473 \u2014 its highest level in almost 23 months. ETH is up 124% since dipping to $1,550 in mid-October, with many prominent analysts\u00a0 tipping<\/a>\u00a0that Ether may become the second cryptocurrency offered through a spot exchange-traded fund in the coming months.<\/p>\n Bitcoin’s stunning market momentum continues to be buoyed by surging activity surrounding the 10 spot Bitcoin ETFs that debuted in January following months of bullish anticipation.<\/p>\n The funds posted their strongest daily volume on record for Feb. 28, with $8B worth of shares traded, according to data compiled by Eric Balchunas, a senior ETF analyst at Bloomberg. The “newborn nine” \u2014 the nine funds excluding the Grayscale Bitcoin Trust, which previously traded before converting into an ETF in January \u2014 hosted $6B worth of trades, doubling their previous all-time high from Feb. 26.<\/p>\n BlackRock’s IBIT ETF accounted for more than half of the volume with $3.34B, followed by Grayscale’s GBTC with $1.84B, and Fidelity’s FBTC with $1.44B. Bitcoin futures ETFs also drove $2B worth of trades.<\/p>\n Daily flows to Bitcoin ETFs also tagged a new record of $637.4M on Feb. 28, with IBIT taking in $612.1M by itself, followed by FBTC with $245.2M, according to\u00a0 data<\/a>\u00a0compiled by Bloomberg analyst, James Seyffart. Outflows from Grayscale\u2019s GBTC jumped 70% over the previous day to $216.4M, with the VanEck Bitcoin Trust also posting an outflow of $3.4M.<\/p>\n <\/p>\n Start for free<\/a><\/div>\n <\/p>\n Data compiled by HODL15Capital, an investor and analyst, shows that the funds accumulated\u00a0 10,050 BTC<\/a>\u00a0on Feb. 27 \u2014 11 times the rate of new BTC issuance at roughly 900 BTC per day. The ETFs now hold more than 300,000 BTC or approximately 1.5% of Bitcoin\u2019s supply.<\/p>\n \u201cYou’ve got to hand it to the Bitcoiners, they said the banks would eventually be forced to buy their bags,\u201d\u00a0 tweeted<\/a>\u00a0Ryan Adams, the co-founder of Bankless. \u201cThey were right.\u201d<\/p>\n The frenzy of Bitcoin accumulation from the spot ETFs also comes as U.S.-based Registered Investment Advisors (RIAs) are beginning to offer their clients exposure to the funds. <\/p>\n Last week, Carson Group, a network of RIAs managing $30B in assets,\u00a0 greenlit<\/a>\u00a0four spot Bitcoin ETFs for its investors.<\/p>\n A Feb. 27\u00a0 filing<\/a>\u00a0from Morgan Stanley indicates that the major bank\u2019s Europe Opportunity Fund may be preparing to hold spot Bitcoin ETF shares, with the fund previously holding shares in Grayscale\u2019s Bitcoin Trust prior to its ETF conversion. Morgan Stanley also\u00a0 confirmed<\/a>\u00a0it was offering wealth management clients exposure to BTC via external crypto funds during its first-quarter earnings call in 2021.<\/p>\nSurging Bitcoin ETF demand drives bullish momentum<\/h2>\n
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RIAs cautiously move towards Bitcoin ETF embrace<\/h2>\n