Bitcoin ETF trading volume spikes 50% amid BTC drop below 100k

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As a seasoned analyst with over two decades of market analysis under my belt, I find myself intrigued by the recent surge in Bitcoin and Ether exchange-traded funds (ETFs). The sheer volume of trading and net inflows is staggering, especially considering the dip in Bitcoin’s price. This could be a testament to the growing maturity and confidence in the cryptocurrency market.

On December 5th, American exchanges that deal with Bitcoin-based ETFs saw a trading volume of approximately $7.1 billion. This represents a 50% increase compared to the volume recorded the previous day. Notably, the value of Bitcoin dipped below $100,000 during this period.

Based on figures provided by SoSoValue, Bitcoin ETFs holding the 12th position reported a combined inflow of approximately $766.66 million on December 5, making it the seventh consecutive day with inflows, amounting to more than $2.7 billion in total.

As a crypto investor, I’ve noticed that BlackRock’s IBIT has been leading the charge for five days straight, pulling in an impressive $770.51 million. Grayscale Bitcoin Mini Trust also made a substantial contribution with $95.35 million, and Fidelity’s FBTC added $47.47 million to the mix. ARK and 21Shares’ ARKB contributed a more modest but still significant $12.32 million to the crypto inflows.

As a crypto investor, I noticed an interesting trend: While most Exchange-Traded Funds (ETFs) were experiencing inflows, Grayscale’s GBTC and Bitwise’s BITB recorded significant outflows amounting to $148.78 million and $10.22 million respectively on that particular day. The remaining ETFs, however, saw no flows at all.

Today’s trading volume for these ETFs experienced a substantial increase, reaching approximately $7.1 billion, marking an over 50% rise compared to the $4.71 billion traded the day before.

This occurred during a significant decrease in Bitcoin’s (BTC) value, which plummeted more than 10% from its previous record high of $103,607 on December 5 to an intraday low of $92,980 on December 6. However, it later slightly recovered to over $98,000. Despite this recovery, Bitcoin is still 4% lower compared to its value over the past 24 hours.

Ether ETFs set record-breaking inflows

Recently, there’s been a remarkable run with Ether Exchange-Traded Funds (ETFs). On December 5th alone, these U.S.-listed funds experienced a collective investment of $428.44 million, which is the largest one-day inflow since they started trading on July 23rd. This surpassed the previous record of $333.92 million set on November 29th.

In the last fortnight, there have been nine straight days of increased investment into the nine Ethereum-based ETFs, amounting to approximately $1.3 billion. BlackRock’s ETHA was the standout performer of the day, attracting a record $292.69 million, raising its total assets under management to $2.64 billion.

In this scenario, Fidelity’s FETH gained approximately $113.61 million, whereas the Grayscale Ethereum Mini Trust and Bitwise’s ETHW accumulated around $30.69 million and $6.58 million respectively. Conversely, Grayscale’s ETHE experienced withdrawals totaling $15.12 million.

These influxes are happening at the same time as Ether’s (ETH) price surge. The cryptocurrency reached an eight-month peak of $3,946 on December 5, which is a 14.5% increase over the past two weeks. At the moment of writing, Ether is being traded at $3,880.

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2024-12-06 10:07