Bitcoin ETFs Triple Total Monthly Volume To $111 Billion In March

Bitcoin exchange-traded funds (ETFs) exploded in popularity in March, with a whopping $111 billion traded – a staggering three times the volume of the previous two months combined.

This newfound craze comes after the introduction of Bitcoin spot ETFs in January. These financial instruments allow investors to gain exposure to Bitcoin without directly buying the cryptocurrency itself.

Initially, Grayscale's Bitcoin Trust (GBTC) dominated the market. However, BlackRock's iShares Bitcoin Trust (IBIT) has recently taken the crown for daily trading volume. Bloomberg analyst Eric Balchunas even compared IBIT to the leading gold ETF, GLD, suggesting it has become the go-to Bitcoin investment option.

This shift in preference coincides with a decline in gold ETFs. Investors seem to be favoring Bitcoin, with Bitcoin ETFs attracting a net inflow of $12 billion as of April 1st. However, gold did have a brief resurgence on Monday, causing GLD's volume to surpass IBIT's momentarily.

BlackRock's IBIT has been a runaway success. It holds the record for the most inflows of any ETF within its first month, absorbing a staggering $7.2 billion. Today, its total assets under management stand at a much higher $17.6 billion.

IBIT's popularity is further reflected in its trading activity. On March 4th alone, its volume topped $1.9 billion, placing it among the most heavily traded ETFs that day.

Meanwhile, Grayscale's GBTC has seen its assets under management nearly cut in half, dropping from 650,000 BTC to 350,000 BTC since January. Interestingly, both IBIT and GBTC have maintained perfect streaks of inflows and outflows, respectively, since their launch in January.

BlackRock CEO Larry Fink even admitted that the success of IBIT has exceeded expectations. Analysts like Bitwise CIO Matt Hougan believe this trend could continue for years to come, fueled by growing investor interest in Bitcoin ETFs.