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BTC Nears $55K, Highest Since Late 2022, as Spot Bitcoin ETFs Hit Record Volume

The nine new spot bitcoin exchange-traded funds (ETFs) that launched in January have set a new record for combined daily trading volume on Monday, reaching $2.4 billion, according to Bloomberg Senior ETF Analyst Eric Balchunas.

The previous record was $2.3 billion, which was achieved on the first day of trading for the new products. The average daily volume for the new ETFs has been around $1.2 billion, Balchunas said.

The surge in volume coincided with a rally in the price of bitcoin, which nearly hit $55,000 on Monday, its highest level since October 2021. The leading cryptocurrency has gained more than 40% since the start of the year, boosted by institutional adoption, regulatory clarity, and innovation in the crypto space.

One of the main drivers of the volume growth was the iShares Bitcoin ETF (IBIT), which accounted for $1.3 billion of the total, breaking its own record by about 30%. Balchunas speculated that the reason for IBIT’s popularity might be its low fee of 0.25%, which is the lowest among the new ETFs.

IBIT is one of the four spot bitcoin ETFs that were approved by Carson Group, a $30-billion registered investment advisor (RIA) platform, last week. The other three are Fidelity Bitcoin ETF (FBTC), Franklin Bitcoin ETF (FBIT), and Bitwise Bitcoin ETF (BITW). These products are available to financial advisors that use Carson Group’s service, which could increase the exposure and demand for bitcoin among retail investors.

Source: The Block

The nine new spot bitcoin ETFs exclude Grayscale’s converted fund, which also has the most assets under management (AUM) of $9.8 billion. The other new products are offered by BlackRock, Ark 21Shares, Invesco, VanEck, Valkyrie, and WisdomTree. Together, they have amassed over $5 billion in AUM in less than two months, according to CoinShares.

Bitcoin reached its highest level in almost a year and a half, trading close to $55,000 on Monday.

BTC/USDT 1 hour-chart on Binance | Source: TradingView

The leading cryptocurrency surged by nearly 6% in one day, hitting $54,900 around 3:00 p.m. ET Monday before falling to $54,600 an hour later, based on TradingView data. This was the first time it broke $54,000 since late November 2022, when Sam Bankman-Fried had not yet been arrested.

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