Bitcoin ETF Trading Volume Hits $5 Billion Amid Bitcoin Price Drop to $91K

The launch of the Bitcoin Exchange-Traded Fund (ETF) in January 2024 has been met with strong interest from institutional investors, allowing them to diversify their portfolios without the need to directly own Bitcoin. As of November 26, Bitcoin’s spot ETF has seen a surge in trading volume, reaching an impressive $5 billion.

The record volume comes as major institutional players, including BlackRock, Fidelity, and Grayscale, lead the charge in Bitcoin ETF investments, reflecting growing institutional confidence in Bitcoin as an asset class.

BlackRock Leads the Bitcoin ETF Market

According to data from Coinglass, BlackRock’s iShares Bitcoin Trust (IBIT) recorded a staggering $3.46 billion in trading volume within just 24 hours, making it the largest player in the Bitcoin ETF market. As of now, IBIT holds the highest assets under management (AUM) at $47 billion and a market capitalization of $44 billion, cementing its position as the leading Bitcoin ETF in the market.

Fidelity and Grayscale Follow Suit

Not far behind, Fidelity’s Wise Origin Bitcoin Fund (FBTC) has also seen impressive success, with $620 million in trading volume on the same day, pushing the fund's share price to $79. Fidelity’s AUM stands at $18 billion, with a market capitalization of $17 billion.

Grayscale, a well-established player in the Bitcoin ETF space, also saw substantial trading volume. The Grayscale Bitcoin Trust ETF (GBTC) accounted for nearly $400 million in trades. While it remains one of the oldest Bitcoin ETF issuers, GBTC has a higher expense ratio of 1.5% per share. However, for investors looking for a lower-cost option, Grayscale also offers the Bitcoin Mini Trust (BTC), which recorded $70 million in trading volume.

Bitcoin’s Price Drops to $91K Amid ETF Surge

While Bitcoin ETFs are experiencing robust trading activity, the price of Bitcoin itself has seen a slight dip, falling to $91,000. This represents a decrease of 1.23% in recent days. Despite the drop in price, Bitcoin’s trading volume rose by around 12%, reaching $91 billion in daily trades. The total market capitalization of Bitcoin also saw a minor decline, now standing at $1.8 trillion, though it still maintains a strong market dominance of 57%.

Crypto Market Faces Continued Liquidations

The broader crypto market has been volatile, with $465 million in liquidations recorded, similar to the previous day’s figures. Bitcoin led the liquidations with $112 million, followed by smaller market cap coins, which saw $81 million in liquidations. These figures reflect the ongoing market volatility and the challenging conditions for traders in the crypto space.

Conclusion

The Bitcoin ETF market continues to experience robust growth, with institutional investors showing strong interest and driving trading volumes to new heights. However, the volatility of Bitcoin’s price remains evident, as the cryptocurrency faces both gains in trading volume and declines in its price, underlining the dynamic and often unpredictable nature of the crypto market