Despite the plunge, BTC ETF daily trading volume exceeds $5 billion!

On August 5, spot BTC ETFs recorded daily trading volume of more than $5 billion in the United States. This is the first time since mid-April that the registered trading volume of US spot BTC ETFs has exceeded $5 billion.

According to DefiLlama data, BlackRock's IBIT trading volume is close to $3 billion, and assets under management have increased by $172 million. Fidelity's FBTC trading volume exceeded $858 million, ranking second in US trading volume.

Despite outflows of nearly $148 million, Grayscale's GBTC trading volume exceeded $693 million, becoming the third most traded ETF on the day.

Eric Balchunas, senior ETF analyst at Bloomberg, emphasized in an article on X that BTC bulls don't want to see a lot of volume on a bad day because it is a "fairly reliable measure of fear."

It is worth noting that on August 5, the Crypto Asset Fear and Greed Index stood firmly in the fear zone, scoring 26 out of 100, with 0 representing absolute fear and 100 representing absolute greed. This is in stark contrast to 74 points a week ago when BTC approached $70,000.

However, Balchunas also noted that deep liquidity is also a good indicator on bad days, as traders and institutions are raving about the ETF.

“Users want to see volume increase, which is good for the long term,” Balchunas added.