Spot Bitcoin (BTC) exchange-traded funds (ETFs) achieved a milestone with over $5 billion in daily trading volume in the US on Aug. 5.
This marks the first time spot Bitcoin ETFs in the US have seen such high trading volume since mid-April.
DefiLlama reported that BlackRock’s IBIT led the way with nearly $3 billion in trading volume, increasing its assets under management by $172 million. Fidelity’s FBTC followed with over $858 million in trading volume, making it the second highest in the US.
Despite a $148 million outflow, Grayscale’s GBTC saw a trading volume exceeding $693 million, positioning it as the ETF with the third largest trading amount on that day.
The Importance of Trading Volume
Eric Balchunas, senior ETF analyst at Bloomberg, emphasized in a X (formerly Twitter) post that a high volume on a bad day reflects fear, which is crucial for Bitcoin traders to monitor.
The Crypto Fear and Greed Index stood at 26 on Aug. 5, indicating fear among investors. Balchunas highlighted the significance of deep liquidity even on bad days, as it reflects positively on the overall market sentiment. He stated:
“So you also want to see volume too, good for the long term.”
