The past month was characterized by a frenzied purchase of the leading cryptocurrency, Bitcoin. As the asset broke a new price high during the month, several investors raced to own a piece of the flourishing cryptocurrency. The latest record from Bloomberg ETF analyst Eric Balchunas shows that Bitcoin ETFs locked in a trading volume of $111 billion last month alone.
Bitcoin ETFs Led Price Increase
Since its approval on January 10th, financial institutions offering the spot Bitcoin ETF have seen massive engagement from American investors who consistently poured billions of dollars into the Bitcoin-backed ETF product. According to the Bloomberg analyst, last month’s record surpassed those of January and February, which sat at around $30 billion and $42 billion, respectively.
The chart also included trading volume from investment giant Grayscale before the ETF approval came. At that time, Grayscale offered its Bitcoin Trust to investors. The company then converted the Bitcoin Trust into a spot Bitcoin ETF product. However, its boom post-approval was shortlived as outflows enveloped the firm’s ETF product.
On the bright side, boomers like BlackRock and Fidelity saw a massive cash inflow from buyers of the Bitcoin-backed ETF product. BlackRock, for example, soaked in over $10 billion from investors, outperforming investment vehicles like Silver ETFs.
These impressive inflows have sparked BTC’s price surge during the month. A few weeks ago, BTC attained a new all-time high of about $73,700. Currently, the leading cryptocurrency has consolidated at a trading price of $65,900, representing a 3.5% decrease in the past 24 hours.
Is the Bitcoin ETF Party Over?
Recent data shows a slowdown in the rate of cash inflow into the Bitcoin ETFs. Onlookers speculate that the Bitcoin ETF party is over. However, experts have said otherwise.
An industry expert trashed the idea that Bitcoin ETFs are no longer in vogue. He explained that brokerage firms and other financial platforms are yet to embrace the investment vehicle. He argued that when these firms adopt the ETF product, a surge in the Bitcoin ETF trading volume will occur.
