BlackRock Bitcoin ETF Heads for Second Consecutive Day of Over $1B Volume

• BlackRock's IBIT is on track for its second consecutive day of over $1 billion trading volume after Monday's record-breaking day.
• U.S.-listed spot bitcoin ETFs attracted $520 million in net inflows Monday as bitcoin rallied to $57,000.

BlackRock's spot bitcoin {{BTC}} exchange-traded fund (ETF) is having another massive trading day, poised to book over $1 billion in trading volume for the second consecutive day, fueled by bitcoin's rally to $57,000.

Nearly 30 million shares of BlackRock's IBIT changed hands during Tuesday's trading session as of 1:22 p.m. Eastern time, Nasdaq data shows, roughly equalling $950 million.

IBIT was the fifth most-traded among all U.S.-listed ETFs during the morning hours, pseudonymous HODL15Capital noted in an X post, adding that Fidelity's bitcoin ETF (FBTC) also experienced "strong" trading volume.

Massive trading volume for Bitcoin ETFs today💥$IBIT is #5 of the 3,400 ETFs & well ahead of @Vanguard_Group ‘s top ETF, $VOO 👋 $FBTC is also very strong. Let’s go $BTC💥 pic.twitter.com/dbgJoleki9

— HODL15Capital 🇺🇸 (@HODL15Capital) February 27, 2024

This follows a record-breaking Monday for the bitcoin ETFs, when the combined daily volume reached $2.4 billion, slightly surpassing their debut volume, Bloomberg Intelligence ETF analyst Eric Balchunas noted in an X post. IBIT booked roughly $1.3 billion volume on Monday, beating its debut day by 30%, Balchunas added.

While trading volume can sometimes indicate positive interest in an investment product, it might not always be the case as the metric looks at both buy and sell orders.

However, Monday’s high volume was certainly characterized by heavy inflows as the funds saw some $520 million in net inflows with only minor outflows from Grayscale's incumbent GBTC, according to BitMex Research.

Fidelity saw the strongest inflows at roughly $243 million, followed by Ark and 21Shares’ ARKB, which attracted $130 million. IBIT came in third place at $111 million, a relatively low number for BlackRock’s fund compared to its average inflows since its debut.

[1/3] Bitcoin ETF Flow - 26th Feb 2024

All data in. Strong day with $520m net inflow

Total net inflow since 11th Jan is $6,030m. pic.twitter.com/Iz4khAzEev

— BitMEX Research (@BitMEXResearch) February 27, 2024

The large trading volumes happened as bitcoin broke out from its sideways consolidation Monday, rallying over 10% and hitting $57,000 after the U.S. market close, its highest price since Nov. 2021. BTC is up 6% over the past 24 hours, outperforming the CoinDesk20 Index's (CD20) 3.5% advance.