Bitcoin exchange-traded funds (ETFs) reached a milestone on Wednesday, with daily trading volumes surging to a record-breaking $7.6 billion. BlackRock’s offering led the charge, which boasted volumes exceeding $3.3 billion. This surge in activity is putting pressure on major brokerage firms like Morgan Stanley to introduce Bitcoin ETFs to their platforms.
Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, highlighted the mounting pressure facing large US investment firms as demand for Bitcoin ETFs continues to soar. He emphasized the dilemma financial advisors face, who may need access to these ETFs on their platforms, potentially causing embarrassment when clients express interest.
The surge in trading volumes comes amidst Bitcoin’s rally past the $63,000 mark, reaching levels not seen since late 2021. BlackRock’s ETF stood out with over $3.3 billion in volume, resulting in inflows of $612 million into the fund. Grayscale and Fidelity also reported significant volumes, but Grayscale experienced outflows of $216 million despite high trading activity.
| Issuer | Ticker | Net Assets | Price | |
|---|---|---|---|---|
| 1 | BlackRock | IBIT | $9.14B | $34.45 |
| 2 | ARK & 21Shares | ARKB | $2B | $60.50 |
| 3 | VanEck | HODL | $256M | $68.39 |
| 4 | WisdomTree | BTCW | $48.7M | $64.20 |
| 5 | Valkyrie | BRRR | $187.5M | $17.14 |
| 6 | Bitwise | BITB | $1.46B | $32.97 |
| 7 | Invesco | BTCO | $378M | $60.40 |
| 8 | Fidelity | FBTC | $6.2B | $52.84 |
| 9 | Franklin Templeton | EZBC | $145M | $35.08 |
| 10 | Grayscale | GBTC | $26.4B | $53.83 |
Investment platforms such as Morgan Stanley, UBS, and Merrill Lynch are reportedly considering the addition of Bitcoin ETFs to their offerings. While UBS has granted limited access to select clients, Morgan Stanley is contemplating the move but has yet to confirm any decision.
Balchunas noted that the surge in trading volumes indicates a craze surrounding Bitcoin ETFs, with nine of the ETFs surpassing the previous day-one record halfway through Wednesday’s trading session. The unprecedented trading activity reflects the growing interest in Bitcoin ETFs and their potential impact on the broader investment landscape.
