Key Notes
- Bitcoin ETF products operating in the US now have $750 billion volume milesone in the market.
- BlackRock is leading the volume boost with $56 billion in managed assets.
- Ethereum ETF products are also benefitting from BlackRock association.
United States spot Bitcoin Exchange-traded Fund (ETF) products are still hitting milestones. According to The Block, the latest milestone on record is how these offerings have attained $750 billion in cumulative trading volume just a year after their official launch in the region. This outlook reflects the swift growth of the funds amongst several mainstream investment options.
US Spot Bitcoin ETFs Records Massive Spike
In March 2024, spot Bitcoin ETFs recorded a cumulative trading volume of $100 billion. By the next month, which coincided with the once-in-four-year Bitcoin halving event, these offerings had successfully doubled their volume value. At the time, BTC price BTC $96 465 24h volatility: 2.0% Market cap: $1.91 T Vol. 24h: $46.44 B hit a new all-time high (ATH) of around $74,000.
Thereafter, the trading volume trajectory saw a relapse , slowing down slightly to accommodate the cooling-off phase for the crypto market. Bitcoin prices consolidated between $50,000 and $70,000 during this phase for the next seven months. Not long before the flagship cryptocurrency broke out to hit a new ATH, fueled by Donald Trump’s win in the United States presidential election.
The trading volume of US spot Bitcoin ETFs almost immediately hit $500 billion. Less than two months after Trump’s inauguration as the President of the United States, this metric has now risen to $753.2 billion, per The Block’s data dashboard. The new milestone marks a notable win for the fund, as it effectively competes against some of the world’s largest and most established ETF products.
BlackRock’s IBIT Dominate US Spot Bitcoin ETFs
Of all eleven spot Bitcoin ETFs greenlighted by the US Securities and Exchange Commission ( SEC ) over a year ago, BlackRock’s iShares Bitcoin Trust (IBIT) is leading the inflows. From holding about 25% market share at launch, IBIT has become the most dominant fund with a 75% share.
Grayscale previously held this position, as it transferred the funds from its GBTC product when it converted to Bitcoin ETF. Unfortunately, Grayscale’s GBTC has declined due to many factors, including its high management fees. BlackRock’s IBIT accounts for up to $56 billion in Assets Under Management out of the $112 billion of the general spot Bitcoin ETFs.
This comes as the asset manager proposes to shift to in-kind redemptions . The move aims to streamline transactions for institutional investors, reducing friction and costs associated with cash-based transactions. If approved, this modification could set a new industry standard and push Bitcoin further into mainstream financial markets.
BlackRock’s ETHA Leads US Ethereum ETFs
BlackRock is not only dominating the Bitcoin ETF scene, it is also extending its dominance to the Ethereum space. BlackRock’s Ethereum ETF (ETHA) is leading its counterparts with a strong wave of inflows.
Around mid-December, ETHA garnered $1.3 billion in inflows over ten trading days, bringing cumulative inflows to $3.19 billion.
On one hand, Ethereum ETF issuers are working on getting staking approval for the offering. In retrospect, ConsenSys founder Joe Lubin said that the issuers of the Ethereum ETFs will soon get a regulatory nod to offer staking features.
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