IBIT Sees Monster Volumes

The Bitcoin ETFs are picking up steam, with BlackRock's volumes starting to rival some of the largest ETFs across all asset classes.

How many BTC will IBIT consume?

Yesterday saw frenzied trading of the bitcoin ETFs, with record-breaking volumes. Overall, a total of $2.4 billion changed hands. BlackRock's IBIT accounted for an incredible $1.3 billion of that.

Trading volumes are not the same as flows, since the same shares can change hands many times, and may not represent money coming into (or out of) the ETFs. Nonetheless, at this point, volumes are a good indication of inflows. All told, yesterday's net inflow of more than half a billion dollars represented over one twelfth of all inflows since the ETFs launched.

This naturally had the effect of pushing prices higher, both directly, as that money was used to buy BTC, and as the wider crypto community recognized the magnitude of the flows, and sought to buy bitcoin to front-run the effect. (This was evidenced on-chain, by the large number of smaller holders whose balances increased.)

The result? Bitcoin smashed through resistance and topped $57,000 at one point, just 17% off its all-time high.

Climbing The Ranks

BlackRock's IBIT alone did twice the trading volumes of the largest gold ETF (GLD).

The ETF Shuffle: Gold Outflows, Bitcoin Inflows
As Bitcoin takes center stage, gold ETFs are seeing significant outflows.

Moreover, it wasn't just gold. IBIT was one of the highest-volume ETFs across the board, only just missing Vanguard's S&P 500 ETF, $VOO.

That was just Monday. Price is the best form of marketing, and there's a virtuous cycle effect that occurs when traders see the value of an investment rising. While the smartest of smart money buys low, the majority buys when price is high and continuing to move higher.

That's what causes a bubble, of course. Despite the "experts" on Twitter proclaiming that this time is different, there's no evidence that it will be. Institutional and retail money is quite capable of acting the same way as degen money. As we've said before, there will be a Reckoning for what's about to happen.

Bitcoin: Prepare For The Reckoning
Be cautious around people who tell you that this time is different, and bitcoin will never experience another bear market.

But we're not there yet, and we won't throw cold water on the party until it's necessary. Enjoy the ride!


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