March Madness: Spot Bitcoin ETF Trading Volume Triples to $111 Billion

In March, spot Bitcoin exchange-traded funds (ETFs) experienced a significant surge in trading volume, reaching a total of $111 billion. This represents nearly three times the trading volume observed in February, signaling a growing interest in these investment products, particularly dominated by Grayscale and BlackRock ETFs.

Data shared by Bloomberg ETF analyst Eric Balchunas revealed that spot Bitcoin ETF trading volume soared to $111 billion in March, compared to $42.2 billion recorded in February. Notably, February marked the first full month of trading for spot Bitcoin ETFs after their market debut on Jan. 11. Therefore, the substantial increase in trading volume in March underscores the rising demand for spot Bitcoin ETFs among investors.

Spot Bitcoin ETF Market Dynamics: BlackRock's IBIT Leads as Grayscale's GBTC Faces Substantial Outflows

Among the spot Bitcoin ETFs, BlackRock's IBIT ETF continues to dominate the market share, followed closely by Grayscale's GBTC and Fidelity's FBTC. Balchunas highlighted IBIT's growing dominance, surpassing GBTC in market share and earning the title of the "GLD of Bitcoin."

Bitcoin ETF trading volume Market share. Source: Bloomberg Intelligence

However, on April 1, the cumulative spot Bitcoin ETFs witnessed net outflows totaling $86 million, with Grayscale's GBTC experiencing significant outflows of $302.6 million. In contrast, BlackRock's IBIT ETF recorded inflows of $165.9 million, while Fidelity's FBTC saw inflows of $44 million.

Bitcoin ETF flows table. Source: Farside Investors

Despite the success of BlackRock and Fidelity's spot Bitcoin ETFs, Grayscale's GBTC has faced substantial outflows, surpassing $15 billion in total outflows after the significant outflows recorded on April 1. GBTC's assets under management have decreased by 46% to $22 million.

Spot Bitcoin ETFs and the Halving Event: Anticipating Market Dynamics and New All-Time Highs

The rise of spot Bitcoin ETFs has transformed the Bitcoin markets, contributing to a surge to new all-time highs in March. With the Bitcoin supply halving event less than 20 days away, market participants anticipate a unique cycle combining the success of ETFs and the impact of the upcoming halving on Bitcoin's supply dynamics.