Bitcoin Spot ETFs recorded $4.7 billion in trading volume amid Monday’s global rout, with BlackRock’s iShares Bitcoin Trust (IBIT) dominating the day by contributing 52% of the total, according to data from Coinglass.
The total market cap of spot BTC ETFs has decreased by about 19%, from $63.9 billion a week ago to $51.9 billion at press time.
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Posted on August 5, 2024 at 2:29 p.m. EST.
Amid a global market sell-off that saw bitcoin fall below $50,000, trading volume for spot BTC ETFs saw high levels of trading volume during the early hours of Monday.
According to data tracked by Coin glassSpot BTC ETFs have already generated around $4.7 billion in trading volume as of Monday, with the majority of the activity coming from BlackRock’s iShares Bitcoin Trust (IBIT), which is responsible for around 52% of the total.
The $4.7 billion figure representing the collective trading volume for spot BTC ETFs so far on Monday is the highest single-day figure since March 25, 2024, when daily volume stood at $6.1 billion, according to The Block and Yahoo Finance.
The high trading volumes for spot BTC ETFs come as the stock market has seen a sharp decline, led by Japan’s Nikkei 225, which has plunged 12%. Not only has BTC fallen 19% in the past seven days to trade at $54,931 currently, after dropping as low as $49,221 on Monday morning, but the S&P 500 has fallen significantly, dropping nearly 5% in the past seven days.
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“If you’re a bitcoin believer, you don’t want to see crazy volume today, because ETF volume on bad days is a pretty reliable measure of fear,” wrote Eric Balchunas, an ETF analyst at Bloomberg, says of X. “On the other hand, the high liquidity on bad days is part of what traders and institutions like about ETFs. So you also want to see volume, which is good for the long term.”
Some speculate that the trading volume in spot BTC ETFs is due to investors acquiring more BTC in light of the general slowdown. Alex Thorn, head of research at Galaxy, said“I assume (for the increase in trading volume) that we are seeing declining buying inflows.”
According to Research on galaxiesBitcoin has the eighth highest Sharpe ratio since the beginning of the year, after the S&P 500, Netflix, JPMorgan, Meta, Goldman Sachs, gold, and NVIDIA. In finance, the Sharpe ratio measures the return on an investment relative to the level of risk taken. A lower Sharpe ratio generally means that an investment is not worth the risk taken, while a higher ratio denotes a better return relative to the risk taken.
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The total market cap of spot BTC ETFs is $51.9 billion at the time of writing, down nearly 19% from $63.9 billion a week ago, according to Coinglass.
On the other hand, Coinglass shows that spot ether ETF trading volume on Monday reached nearly $614.7 million in trading volume, led by Grayscale’s ETHE. According to The Block and Yahoo Finance, Monday is the sixth-highest day in terms of volume, following the first five days of the ETH ETF’s debut in July.
