Bitcoin Spot ETF Trading Volume Surpasses $150 Billion Milestone; Where to Go Amid Market Turmoil

U.S. bitcoin spot exchange-traded funds (ETFs) surpassed the notable milestone of $150 billion in cumulative trading volume on March 19, according to the latest data.

This development is particularly noteworthy considering the relatively short time the spot ETFs have been on the market after receiving approval from the U.S. Securities and Exchange Commission (SEC) less than three months ago.

However, despite this milestone success, the market is not without its challenges. Record net outflows from the Bitcoin Spot ETF were observed alongside a significant drop in the price of Bitcoin yesterday.Bitcoin Miner

Record Trading Volume and Market Dynamics

The achievement of over $150 billion in cumulative trading volume for the U.S. spot BTC ETF reflects the market’s strong interest and participation in cryptocurrencies. Notably, a large portion of this trading volume was recorded in a relatively short period of time, adding $50 billion since March 8 alone.

Additionally, yesterday alone, trading volume reached $5.6 billion, led by BlackRock’s IBIT, Grayscale’s GBTC, and Fidelity’s FBTC, underscoring investors’ active participation in these financial products.

Bitcoin Spot ETF Trading Volume | Source: TheBlock

However, this enthusiasm was tempered by a major shift in the market, with Grayscale’s GBTC experiencing a market share “squeeze” in daily outflows.

Instead, BlackRock’s IBIT has been the main beneficiary, with a significant increase in market share from 22.1% at inception to 45.2%.

Record Outflows and Vulnerability in Spot Bitcoin ETFs

The net outflow of $326.2 million from U.S. spot bitcoin ETFs, a figure more than double the record $158.4 million set earlier this year, underscores the inherent volatility of the cryptocurrency market.

This outflow was particularly evident in Grayscale’s GBTC, which experienced significant redemptions, signaling investor caution amid market volatility.Kaspa Miner

In this development, Peter Schiff criticized spot Bitcoin ETFs, highlighting a major flaw: their liquidity is limited by the US market’s business hours.

Schiff emphasized that this limitation means that if there is a market downturn outside of these hours, investors will not be able to sell their holdings until trading resumes in the U.S., leaving them “helpless” to react to overnight market movements.