The latest developments in Bitcoin-based exchange-traded products (ETPs) and ETFs mark a significant turning point for cryptocurrencies and are attracting the attention of the entire financial world.
Accordingly, analyzes by James Butterfill, Head of Research at CoinShares, currently show a remarkable shift: While Bitcoin ETPs recorded an average daily trading volume of just USD 34 million in 2023, they can already reach an average of USD 2 billion in 2024. This sharp increase once again reflects the increased confidence and increasing institutional interest in BTC as an asset class since then.
Bitcoin ETPs have shifted from trading a daily average of US$34m in 2023 to US$2bn in 2024 so far. pic.twitter.com/FNvFvk3MB1
— James Butterfill (@jbutterfill) February 28, 2024
Find out in this article how the volume of BTC Spot ETFs could affect the further price forecast. We also want to look at a coin that should particularly benefit.
Unexpected Increase in Bitcoin ETP Trading Volume: From Millions to Billions
Bloomberg ETF analyst James Seyffart also underlines this observation by noting that Bitcoin ETF trading volume has reached a new record of 7.69 billion USD. This means that the previous record from launch day can be exceeded by more than 3 billion USD. These numbers are important not only for the BTC markets, but for the entire financial world.
The significance of these record numbers is highlighted by the expertise of analysts such as Seyffart and Butterfill, who suggest that BTC and its related financial products are increasingly being viewed as legitimate and essential components of a diversified portfolio.
The new record for #Bitcoin ETF trading volume is officially $7.69 billion. Previous record was $4.66 billion from launch day. https://t.co/rZsOSUqk35 pic.twitter.com/QaOKe2LuVU
— James Seyffart (@JSeyff) February 28, 2024
The impressive development of trading volume from 2023 to 2024 shows how quickly the climate for investing in the crypto market can change. Accordingly, broad circles of investors are becoming increasingly aware of the investment opportunities and return opportunities offered by cryptocurrencies. Initial analysts are already assuming that some newcomers have already re-entered the market due to FOMO – the Fear of Missing Out.
Are more and more companies and investments getting into cryptocurrencies?
On the other hand, these recent record sales of Bitcoin ETPs and ETFs are also a clear sign that cryptocurrencies and BTC in particular are also of interest among institutional investors with larger account balances. One of the big key drivers of analyst bullish sentiment towards the early spot ETFs has portrayed exactly this. They have enabled a gateway for institutions that would otherwise find it more difficult to acquire cryptocurrencies due to the stricter regulations to now also invest.
