The United States spot Bitcoin exchange-traded fund (ETF) market experienced a significant decrease in daily trading volume on Monday, with only $779.87 million being traded. This drop marks the third lowest daily trading volume, following the records set on February 5th and 6th, which were $649.17 million and $692.11 million, respectively. Despite an inflow of $61.98 million into spot Bitcoin ETFs on Monday, the daily trading volume has fallen below its usual range of over $1 billion.
One possible explanation for the decline in Bitcoin ETF trading volume in the U.S. is the lingering low market sentiment following recent heavy sell-offs. According to SOFA.org Head of Insights, Augustine Fan, investors are also awaiting signals from the upcoming Fed’s Jackson Hole meeting later this week. Additionally, the summer holidays and decreasing concerns about an imminent recession may have contributed to the decrease in trading activity.
Among the various Bitcoin ETFs in the market, BlackRock’s IBIT led the daily trading volume metrics with $450.53 million. Notably, it also saw the highest inflow of $92.68 million on Monday. Following closely behind was Fidelity’s FBTC, with a daily trading volume of $134.51 million and an inflow of $3.87 million. These two Bitcoin ETFs were the only ones that recorded inflow, underscoring their popularity among investors. This could be attributed to the fact that several industry leaders have been promoting these products to their clients, while others have expanded their offerings to include spot Bitcoin ETFs.
However, not all Bitcoin ETFs experienced inflows on Monday. Bitwise’s BITB, for example, saw an outflow of $25.7 million, the highest among all the records from that day. Similarly, Invesco’s BTCO recorded an outflow of $8.84 million. These outflows suggest that some investors may be pulling out of certain Bitcoin ETFs, potentially due to market conditions or other factors influencing their decision-making.
The recent decline in trading volume of United States spot Bitcoin exchange-traded funds can be attributed to a combination of factors, including market sentiment, upcoming events, and the preferences of investors towards certain products. It will be interesting to see how these dynamics continue to evolve in the coming days and weeks.
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