Bitcoin Exchange-Traded Funds (ETFs) have set a new record in trading volume, with over $2 billion sold in a single day. On February 26, the spot bitcoin ETF marked a record-breaking volume of $2.4 billion, followed by $2 billion the following day.
The demand for bitcoin has been rapidly increasing throughout February. The cryptocurrency has surpassed $63,000 per bitcoin for the first time since November 2021. The Securities and Exchange Commission's (SEC) approval of spot ETFs in January has contributed to this resurgence of bitcoin. According to an article by Coindesk, these new ETFs added 10,000 bitcoins on February 26 and 12,000 on February 27. Of the $2 billion in spot bitcoin ETF exchanges, BlackRock's spot bitcoin accounted for nearly 70% of the total trading volume.
As reported by Coingape, Bitcoin ETFs have seen a net inflow of over $1 billion since February 26. The net inflow of BlackRock's ETF has exceeded $6.5 billion since its introduction. Fidelity Bitcoin ETF (FBTC) experienced the second-largest inflow with $126 million.
According to a press release by the SEC, it approved the sale of spot bitcoin ETFs on January 10, 2024. Prior to this approval, the commission had rejected over 20 exchange rule filings seeking to establish a bitcoin ETF trading option. However, following a ruling from the U.S. Court of Appeals for the District of Columbia that found the SEC had not adequately explained its initial disapproval of these ETFs, the SEC decided to approve the rule filing.
SEC Chairman Gary Gensler supported this decision but cautioned investors about investing in such a volatile asset. Gensler said: "Though we’re merit neutral, I’d note that the underlying assets in metals ETPs have consumer and industrial uses, while in contrast bitcoin is primarily a speculative, volatile asset that’s also used for illicit activity including ransomware, money laundering, sanction evasion, and terrorist financing."
