Worrying sign? 6-Month Low Trading Volume for US Bitcoin ETFs

The local U.S. Bitcoin exchange-traded fund (ETF) market recorded a daily trading volume of $779.87 million on Monday.

According to analytics data from SoSoValue, this decline in daily trading volume is the third-lowest after records on February 5 and 6, which were $649.17 million and $692.11 million, respectively.

Bitcoin ETF Low Trading Volume

Yesterday’s record showed an inflow of $61.98 million into local Bitcoin ETFs, the highest since August 8. Still, daily trading volume fell from its usual range above $1 billion.

Last week, the financial product recorded a trading volume between 1.18 billion and 1.79 billion dollars. Interestingly, the local Bitcoin ETF saw a significantly high daily trading volume above $5 billion earlier this month. The surge came amid a sudden drop in the price of the leading cryptocurrency.

Highlighting the possible trigger for the latest drop in US Bitcoin ETF trading volume, SOFA.org’s Head of Insights Augustine Fan stated:

Low trading volume is expected as market sentiment has remained low since the strong sell-off of a few weeks ago. It’s also worth noting that the summer holidays and easing concerns about an impending recession with recent data have investors looking for more signals at the Fed’s meeting in Jackson Hole later this week.

BlackRock’s IBIT leads with more than $450 million

BlackRock’s IBIT led the daily trading volume metrics with $450.53 million. Its opening Monday was $92.68 million, the highest among a slew of similar products. Fidelity’s FBTC followed BlackRock with a daily trading volume of $134.51 million and an inflow of $3.87 million.

The two Bitcoin ETFs were the only ones to see inflows. Their leadership positions are partly tied to several prominent industry leaders opening their doors for clients to invest in IBIT or FBTC. Others have spread their tentacles to other local Bitcoin ETFs.

Meanwhile, Bitwise’s BITB saw an outflow of $25.7 million, the highest on record yesterday. Invesco’s BTCO recorded an outflow of $8.84 million.

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