BlackRock’s iShares Bitcoin Trust (IBIT) ETF saw trading volume exceed $3.7 billion, outpacing Vanguard’s S&P 500 ETF (VOO) at $3.28 billion. This surge contributed to Bitcoin’s 7% price rebound above $93,000 in 24 hours, signaling growing institutional interest in cryptocurrency investments.
IBIT ETF volume hits $3.7 billion: Surpasses major traditional ETFs like VOO, highlighting crypto’s rising mainstream appeal.
Bitcoin price surges 7% to $93,040: Follows sharp weekly decline, with Ether, XRP, and others also gaining ground.
Mining stocks decline despite rebound: Iren down 15%, Cipher Mining 10%, linked to post-halving challenges and falling hash prices to $39 per PH/s.
Discover how BlackRock IBIT ETF’s record $3.7B volume sparked Bitcoin’s rebound above $93K amid Vanguard’s crypto ETF entry. Explore market impacts and key insights for investors today.
What Caused BlackRock’s IBIT ETF Trading Volume to Surge Beyond $3.7 Billion?
BlackRock’s IBIT ETF trading volume spiked to over $3.7 billion, surpassing Vanguard’s S&P 500 ETF (VOO) at $3.28 billion, according to Barchart on-chain data. This marked a pivotal moment for cryptocurrency ETFs in the U.S. market. The increase aligned with broader market recovery, boosting Bitcoin’s price by more than 7% in 24 hours to above $93,000 following an earlier weekly dip.
How Has Vanguard’s Entry into Crypto ETFs Influenced Bitcoin’s Market Rebound?
Vanguard’s announcement on Monday to allow trading of Bitcoin, Ether, XRP, and Solana-focused ETFs and mutual funds has expanded access for its over 50 million clients, managing more than $11 trillion in assets. This move, after successful testing, eases entry for traditional investors into crypto. As reported by Cryptopolitan, it underscores institutional adoption, with BlackRock’s IBIT already holding $66.2 billion in assets, or 3.88% of Bitcoin’s supply per SoSoValue data. Expert Andrew Kadjeski, head of brokerage at Vanguard, noted that tests confirmed seamless buying and selling, fostering confidence. Short sentences highlight the shift: Crypto ETFs now rival stock funds in liquidity. Bitcoin’s rebound to $93,040 reflects this optimism, with altcoins like Cardano (up 14%) and Chainlink (up 11%) also surging.
Frequently Asked Questions
What Is the Current Performance of BlackRock’s IBIT ETF Amid Recent Outflows?
BlackRock’s IBIT ETF has amassed $66.2 billion in total assets, despite a $65.92 million net outflow in December and $2.34 billion in November, per SoSoValue. With BlackRock overseeing 1,400 ETFs and $13.4 trillion in assets under management, IBIT remains a leader, capturing 3.88% of Bitcoin’s supply and driving market volume highs.
Why Are Bitcoin Mining Stocks Declining Despite the Crypto Market Rebound?
Bitcoin mining stocks like Iren (down 15%), Cipher Mining (down 10%), and TeraWulf (down 7%) continue falling due to the mid-2024 halving that cut rewards to 3.125 BTC per block. Rising hashrate has elevated costs and competition, with Hashrate Index reporting hash prices at $39 per PH/s, a 30% drop from $62 in July. This measures profitability per computational unit, straining miners amid higher energy demands.
Key Takeaways
- Record IBIT Volume Signals Institutional Shift: Exceeding $3.7 billion, it outpaces traditional ETFs, drawing more mainstream capital into Bitcoin.
- Bitcoin and Altcoin Gains Reflect Broader Recovery: BTC up 7% to $93,040, with Ether, XRP, Dogecoin at 7%, Cardano at 14%, and Chainlink at 11%, post-Vanguard’s crypto inclusion.
- Mining Sector Challenges Persist: Halving effects and declining hash prices urge miners to optimize operations for long-term viability in a rebounding market.
Conclusion
The surge in BlackRock IBIT ETF trading volume to over $3.7 billion, coupled with Vanguard’s expansion into Bitcoin ETFs, has catalyzed a robust market rebound, pushing Bitcoin above $93,000 and lifting major altcoins. Despite mining stock declines from halving pressures, these developments affirm cryptocurrency’s integration into traditional finance. Investors should monitor institutional inflows for sustained growth opportunities ahead.