Spot Bitcoin exchange-traded funds witnessed a $111 billion increase in trading volume in March. This development was almost three times the trading volume recorded in February, when the Grayscale and BlackRock ETF funds dominated the market. According to data shared by Bloomberg ETF analyst Eric Balchunas, spot Bitcoin ETF transaction volume reached $111 billion in March compared to $42.2 billion recorded in February.
Record Rise in March
It should not be forgotten that February is the first full transaction month as Bitcoin investment products were released on January 11. So the strong performance in March reinforces growing interest in spot Bitcoin ETF funds.
BlackRock's Bitcoin ETF fund IBIT continues to dominate its trading volume, followed by Grayscale's GBTC fund and Fidelity's FBTC fund. Balchunas acknowledged this in a later post by X, sharing a graph of analyst James Seyffart showing his growing dominance in the market share of the IBIT fund as the GBTC, she said:
“While all ETF funds won in terms of profitable hits, IBIT won the volume race and officially became Bitcoin's GLD.”
What's the Latest in ETF Funds?
On April 1, cumulative spot Bitcoin ETF funds recorded a total net breakout of $86 million, according to data from Farside Investors. BlackRock's $165.9 million dominant IBIT ETF inflows were overshadowed by Grayscale's $302.6 million debuts.
Fidelity's FBTC fund recorded its second-high inflow at $44 million on April 1, while ARK Invest 21Shares ETF saw its first debut of $300,000 since the ARKB fund began trading on Jan. 11. BlackRock and Fidelity's spot Bitcoin ETF funds reached nearly $18 billion and $10 billion, respectively, in managed assets last month, and were the most successful in terms of inflows.
On the other hand, Grayscale's GBTC fund exceeded $15 billion in total outflows after outputs above $300 million recorded on April 1. According to data from Coinglass, GBTC's assets under management fell 46% to $22 million. Spot Bitcoin ETF funds completely changed the Bitcoin market to reach all-time highs in March. Market participants are waiting for a different cycle, along with the success of ETF funds and the Bitcoin halving event, which remains for less than 20 days.