Bitcoin (BTC) surged to $64,000 amid various spot Bitcoin exchange-traded funds (ETFs) recording their highest daily trading volumes. Bitcoin’s price rally, which has seen a remarkable 60% increase in the past month, coincided with the introduction of spot Bitcoin ETF trading on January 11.

On Wednesday, spot Bitcoin ETFs reached a new daily trading volume peak, with transactions totaling approximately $7 billion. This surge in trading activity surpassed the previous record of $4.66 billion set on the ETFs’ launch day. BlackRock’s Bitcoin ETF (IBIT) notably broke its volume record for the third consecutive day, with over 96 million shares, equivalent to approximately $3.3 billion. This volume more than doubled the previous day’s record and indicated robust investor interest in Bitcoin ETFs.

The performance of the nine new spot Bitcoin ETFs, excluding Grayscale’s converted fund, witnessed a staggering $5.8 billion in trading volume, marking a significant increase from their debut trading day’s volume.

The hype of the market does not only occur on the spot market; both futures markets and options markets witness the surge of value. According to Glassnode, the total Open Interest in futures markets has risen to a value of $21 billion. The value of open futures contracts is approaching the highs seen during the most euphoric periods of 2021. Options markets have also experienced significant growth, with open interest hitting $17.5 billion compared to the $21 billion in futures markets, which is a relatively new development since 2023.

The growth in options markets suggests that Bitcoin derivative markets are becoming increasingly mature, with investors, traders, and miners now having deeper and more liquid options to hedge and manage risk.

Bitcoin’s price volatility in the perpetual futures markets resulted in significant losses across various traders, with approximately $700 million in liquidations occurring within 24 hours as prices surged past $64,000. On the flipside, Michael Saylor’s firm, MicroStrategy saw a remarkable increase in the value of its BTC portfolio, briefly exceeding $12 billion as Bitcoin reached $64,000. MicroStrategy’s total Bitcoin holdings reached 193,000 after it purchased an additional 3,000 BTC worth $155 million in February, following a previous purchase of 850 BTC for $37.2 million the month prior.

Overall, the surge in Bitcoin’s price to $64,000 coincided with record-breaking trading volumes for spot Bitcoin ETFs bringing optimism to the market and attracting new players.

The information provided in this article is for reference only and should not be taken as investment advice. All investment decisions should be based on thorough research and personal evaluation.

Further Reading

• The SEC Approves Spot BTC ETFs
• Introducing BlockBase Ventures APAC Fund: Accelerating Mass Adoption of Blockchain