After the market crash, the Bitcoin ETF volume reached $5.7 billion as net inflows decreased
Key receivers
Spot Bitcoin ETF volumes have doubled during the market downturn. Morgan Stanley will begin recommending bitcoin ETFs to qualified clients.
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As crypto markets have experienced high volatility, trading volume on the Bitcoin exchange over the past 48 hours has risen to $5.7 billion on August 6. According to data from Coinglass, outflows stabilized at $84.1 million, while net assets remained at the $48 billion threshold.
The rise in ETF trading has seen an 8 percent decline in Bitcoin since Aug. 4. Ethereum is down 21% after major funds like Jump Trading and Paradigm reportedly sold hundreds of millions of dollars worth of ETH. Alex Thorne, head of research at Galaxy Digital, reported that the Bitcoin ETF traded more than $1.3 billion within 20 minutes of the market opening. The iShares Bitcoin Trust led the movement with more than $1.27 billion.
Return after six months minimum
Bitcoin and Ethereum prices are recovering after hitting six-month lows on Monday, with Bitcoin falling below $50,000 and Ethereum posting its biggest one-day drop in three years. The sell-off coincided with a broader market slump affecting global stocks.
Despite the market turmoil, net outflow data from CoinGlass indicates that most ETF holders are holding their positions. Analysts believe the sell-off was exacerbated by broader macroeconomic concerns, including weak US employment data and volatility across asset classes. The S&P 500 index has fallen more than 5% since August 1.
JPMorgan Chase analysts reported that Bitcoin ETF trading volumes more than doubled on Monday to more than $5.2 billion, surpassing the first period in January. The Spot Ethereum ETF has seen over $49 million in inflows across all funds.
Increased asset allocation is expected
Bernstein analysts say that unlike in previous cycles, Bitcoin ETFs now offer a highly liquid investment avenue, with about $2 billion traded daily. Expect increased asset allocation for Bitcoin as more brokerages adopt these products in the coming months.
As Bitcoin ETF volume rises, some investors see the price plunge as a buying opportunity. However, Markus Thielen of 10x Research said the market structure remains weak, and expects new crypto investment to slow until conditions stabilize.
“It is unlikely that significant players will invest in high volatility and unpredictable prices,” Thielen said. “Many still need to move out and transfer their portfolios,” he explains of his assessment.
Doubling the size of the Bitcoin ETF shows how quickly institutional capital can flow into crypto markets during volatile times. It also shows the importance of ETFs as a vehicle for exposure to Bitcoin among traditional investors.
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