BlackRock's IBIT, the world's largest Bitcoin exchange-traded fund (ETF), continues to make waves, recording over $1.3 billion in daily trading volume for the second consecutive day on Tuesday. This surpasses the previous record set by IBIT just the day before, signifying continued investor interest in the cryptocurrency.
Rallying Bitcoin and Inflows Drive Volume:
The surge in trading volume coincides with Bitcoin's price reaching $64,000, suggesting investors are capitalizing on the recent upward trend. Additionally, U.S.-listed spot Bitcoin ETFs as a whole attracted $520 million in net inflows on Monday, further contributing to the trading activity.
IBIT's Dominance and Strong Inflows:
IBIT traded roughly 42 million shares, exceeding double its average daily volume since its launch in January. This massive volume placed it among the top five most-traded ETFs in the U.S. during the morning session. Moreover, IBIT attracted $111 million in net inflows, solidifying its position as a major player in the Bitcoin ETF space.
A Case For Supply & Demand:
900 Bitcoin are mined daily, and this will be cut to 450 BTC around April 18, 2024 due to the halving event. BlackRock is acquiring around 6,200 BTC daily. If BlackRock attempted to buy directly from miners, this would lead to a net deficit of around 5,300 BTC. This is a classic case of supply and demand. We're not even living in the post 2024 halving world yet and we are seeing astonishing performance in Bitcoin. Overall, BlackRock's IBIT continues to be a driving force in the Bitcoin ETF market, attracting significant investment and potentially contributing to the bullish sentiment surrounding the cryptocurrency. Looking for a trading tribe? Look no further than ZTRADEZ Stock Market Options Trading Discord Community. Join For FREE Today!
The information contained in this article is for informational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions. Remember, all investments involve inherent risks, and past performance is not necessarily indicative of future results.
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