Bitcoin ETF volume reached $5b as Bitcoin price dropped $91k

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As a seasoned crypto investor with over a decade of experience navigating the volatile digital currency market, I must say that the rise of Bitcoin ETF has undeniably shaken things up. The massive influx of institutional capital into these products is nothing short of extraordinary, and it’s clear that this trend will continue to reshape our landscape.

Beginning from its launch in January 2024, there’s been a significant surge in investments by institutional investors into the Bitcoin ETF. This influx enables these institutions to expand their asset portfolio without directly purchasing Bitcoin from the cryptocurrency market.

As an analyst, I observed a significant surge in trading volume for the Bitcoin spot ETF on November 26th, reaching a staggering $5 billion. This substantial increase was primarily driven by the strategic moves of industry giants such as BlackRock, Fidelity, and Grayscale, who played key roles in this market activity.

Based on Coinglass data, BlackRock’s iShares Bitcoin Trust (IBIT) has traded a staggering $3.46 billion in the last 24 hours, making it the leader among its peers. At the moment, IBIT manages assets worth $47 billion and boasts a market capitalization of around $44 billion.

The Fidelity Wise Origin Bitcoin Fund, or FBTC, experienced significant trading activity over the previous day with a volume of approximately $620 million and a share price of around $79. As a result, Fidelity’s assets under management (AUM) increased to $18 billion, while the fund’s market capitalization stood at an impressive $17 billion.

Approximately $400 million worth of trades are associated with Grayscale Bitcoin Trust ETF (GBTC), making it the third-largest issuer of Bitcoin ETFs. Given its longstanding position, GBTC has the highest management fee of 1.5% per share. However, it caters to investors who prefer a higher ratio in Bitcoin by offering an alternative product called Bitcoin Mini Trust (BTC), which trades at around $70 million.

Bitcoin ETF rise, BTC price dropped

In recent cryptocurrency market activity, Bitcoin’s (BTC) value has taken a turn, falling to approximately $91,000 or a 1.23% drop in the previous trading days. Despite an increase of around 12% in Bitcoin’s daily trading volume to reach $91 billion, its market capitalization experienced a slight decrease to about $1.8 trillion. This shift has resulted in Bitcoin maintaining a dominance of around 57%.

Yesterday’s crypto market saw similar liquidation amounts as the day before, totaling approximately $465 million. Leading the charge in these liquidations were Bitcoin and smaller-market-cap coins, accounting for around $112 million and $81 million respectively.

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2024-11-27 04:12