Bitcoin ETFs see record-high trading volumes

Retail traders appear to be using a new tool during this huge rally for bitcoin — exchange-traded funds.

The funds, which launched last month, have seen their trading volume surge this week as bitcoin continues to climb.

For example, the iShares Bitcoin Trust (IBIT) saw about 96 million shares change hands on Wednesday, according to FactSet. That is more than double its previous record high of about 43 million shares, which came on Tuesday.

Another multibillion dollar fund, the Fidelity Wise Origin Bitcoin Fund (FBTC), saw roughly 27 million shares change hands on Wednesday, easily surpassing the 16.8 million traded on Jan. 11, its first day of trading.

Meanwhile, the ARK 21Shares Bitcoin ETF (ARKB) was traded about 7 million times, or about 1 million higher than its Jan. 11 record.

The highly active market around these funds is likely a sign that retail traders are using the ETFs to participate in the bitcoin rally. The largest cryptocurrency crossed the $60,000 mark on Wednesday for the first time since November 2021.

While ETFs are used by all types of investors, the heavy intraday trading suggests that retail traders are a sizable group buying and selling the funds.

The trading volume is even more impressive when considering the price. Bitcoin has risen about 30% since the ETFs were approved, and the tracking funds have all increased in price over the past six weeks, including a big jump this week.

That price movement means that many of the funds saw a record dollar amount traded on Wednesday, as well.

One notable exception to the trend was the Grayscale Bitcoin Trust (GBTC), whose trading volume was still far off of its levels from January. The fund, which has seen billions of dollars of outflows since its launch, had about 34 million shares traded on Wednesday, well below its Jan. 11 number. Still, that translates to more than $1.5 billion in trading volume.

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