Trading Volume Soars
US spot Bitcoin Exchange-Traded Funds (ETFs) have reached a significant milestone, with cumulative trading volume exceeding $150 billion as of March 19. This growth is impressive given that these ETFs have only been available for less than three months.
Market Challenges
Despite this milestone, the market has faced challenges. Record net outflows were observed yesterday as Bitcoin’s price dipped.
Outflows and Vulnerabilities
The cryptocurrency market’s volatility was evident in the net outflow of $326.2 million from US spot Bitcoin ETFs, more than doubling the previous record. This outflow was particularly noticeable in Grayscale’s GBTC, indicating investor caution during market fluctuations.
Liquidity Concerns
Peter Schiff has raised concerns about the liquidity of spot Bitcoin ETFs, highlighting that their trading is limited to US market hours. This means that investors cannot sell their holdings during market downturns outside of these hours, leaving them vulnerable to overnight price movements.
