The United States Bitcoin ETF Market Records Decreasing Trading Volume

The United States Bitcoin ETF Market Records Decreasing Trading Volume

The United States spot Bitcoin exchange-traded fund (ETF) market recorded a daily trading volume of $779.87 million on Monday. This marked a decrease in trading volume compared to previous records, with the lowest being $649.17 million and $692.11 million on February 5th and 6th, respectively.

The recent data from SoSoValue revealed that there was an inflow of $61.98 million into spot Bitcoin ETFs, the highest since August 8th. However, the daily trading volume has dropped from its usual range above $1 billion, with last week’s volume ranging between $1.18 billion and $1.79 billion. Interestingly, there was a surge in daily trading volume above $5 billion earlier this month, coinciding with a sudden price drop for Bitcoin.

Augustine Fan, the Head of Insights at SOFA.org, pointed out that the low trading volume can be attributed to the overall low market sentiment following recent sell-offs. Additionally, factors such as summer holidays and decreasing concerns about an imminent recession have led investors to adopt a wait-and-see approach, especially ahead of the Fed’s Jackson Hole meeting later this week.

BlackRock’s IBIT led the daily trading volume metrics with $450.53 million, with an inflow of $92.68 million on Monday. This marked the highest inflow among similar products. Fidelity’s FBTC followed closely behind with a daily trading volume of $134.51 million and an inflow of $3.87 million. Both Bitcoin ETFs were the only ones that saw inflow records, partly due to prominent industry leaders offering investment opportunities in IBIT and FBTC.

On the other hand, Bitwise’s BITB saw an outflow of $25.7 million, the highest from Monday’s record. Invesco’s BTCO also recorded an outflow of $8.84 million. These outflows suggest a certain level of uncertainty among investors, potentially influenced by market conditions and external factors.

The United States Bitcoin ETF market is experiencing fluctuations in trading volume, with various factors contributing to the current trends. It will be interesting to see how the market reacts to upcoming events and developments in the cryptocurrency industry.

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