Bitcoin Spot ETF daily transaction volume has approached the range of $7 Billion setting a new record since the seven weeks it started trading.
The $7.686 Billion transaction volume represents all the trading volume of the nine Bitcoin Spot ETF available on the market, where most of it came from BlackRock’s ETF.
Bitcoin Spot ETF Volume Approaches $7.7 Billion
The data was reported by James Seyffart, who is a well known analyst in the financial market who published the data from Bloomberg Terminal to his Twitter (X) account.
According to the data that was published, the overall Bitcoin Spot ETF transaction volume has reached $7.686 Billion approaching the $7.7 Billion mark, which is a new record.
This is a significant accomplishment considering that these ETFs were only launched seven weeks ago.
It took other ETFs that are backed by other assets months or even years to reach this kind of transaction volume, solidifying the idea that institutional investors want in on Bitcoin.
Increasing transaction volume of those ETF has made a positive impact on Bitcoin’s sentiment which led to its price increasing to more than $60,000, nearing the last high of the 2021 bull market.
The perceived positive sentiment is present because with ETFs the issuers have to purchase the same amount of the asset backing the ETF in the same value as the transaction of those ETF.
So, when the transaction volume of Bitcoin Spot ETF reached $7.7686 Billion the issuers had to transact Bitcoin itself with the same volume.
Note that the $7.686 Billion does not represent a buying volume because all of those transaction volumes are a mix of buying transactions and selling transactions of those ETFs.
Looking at Bloomberg Intelligence, it can be seen that the buying volume that is represented by the ETF inflow data, has reached $673.4 Billion.
This means that the issuers were buying Bitcoin as much as more than $600 Billion yesterday that prompted the rise of Bitcoin price to higher than $60,000.
The buying pressure could have been higher if it were not for Grayscale’s investors who are selling ETFs as much as $216.4 Billion in one day, hence creating a selling pressure of that exact same amount on the Bitcoin market.
If Grayscale was out of the picture, the overall value of yesterday’s buying pressure would round out to about $889.8 Billion, which would have increased the Bitcoin price even higher.
The overall transaction was supported by BlackRock’s ETF, IBIT, which reached an inflow of $612.1 Billion which is the highest volume yesterday, followed by Fidelity with $245.2 Billion.
Those two issuers seems to be the reason why Bitcoin was pumping yesterday as both of them are buying Bitcoin in the hundreds of Billion Dollars amount.
Nearing 2021 All Time High
Currently the price of Bitcoin stands above $60,000 which looks a bit risky considering movements of the previous bull market shows that Bitcoin cannot rise higher than the previous bull market highs if the Bitcoin Halving has not occurred yet.
Since the halving has not occurred yet, there is a possibility that Bitcoin might top its price increase at the $69,000 to $64,00 mark prompting a potential price correction ahead.
As of right now, if correction happens it might not be too bad as the strongest support still stands at around $45,000 which would probably give investors another chance to accumulate Bitcoin before the price goes up even higher.
So, in order to capitalize on the potential volatility ahead, investors need to have a good strategy so that emotions and FOMO don’t play too big of a part in the decision making regarding purchasing or selling Bitcoin ahead.
Disclaimer:
The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.
Official Website
Website: https://www.bitrue.com/
Sign Up: https://www.bitrue.com/user/register