Bitcoin spot ETF trading volume hits multi-week high as bull market 'in play'

The daily trading volume for combined U.S.-based spot bitcoin exchange-traded funds has reached its highest level since mid-January.

On Tuesday, total daily trading volume across all eleven spot bitcoin ETFs reached a multi-week high of $2.58 billion, according to The Block's data. BlackRock's iShares Bitcoin ETF (IBIT) recorded the highest volume at $623.89 million, with Grayscale's converted GBTC fund in second place at $619.76 million. 

According to this week's Glassnode market report, "with the new spot bitcoin ETFs gaining momentum, a bull market in the digital asset space is arguably in play." 

ETF inflows reinvigorating the altcoin market 

Glassnode analysts said multiple indicators have emerged after the approval of several spot bitcoin ETFs that act as early indications of institutional investor capital shifting towards higher-risk investments.

The report referenced Glassnode's Altcoin Indicator, which indicated a reinvigorated momentum in altcoin markets since the beginning of February. "Our Altcoin Indicator has signaled positive momentum since October last year, with a brief pause during the sell-the-news event after the Bitcoin-ETFs went live. This momentum re-triggered on February 4," Glassnode's analysts said.

The Glassnode report did caveat its observation that, historically, "capital moves down the risk curve into altcoins at a slower pace compared to the rotation between the two major cryptocurrencies, a trend which appears to be in play once again."

According to The Block's Prices Page, major altcoin performance in the past 24 hours has been mixed, with BNB increasing by 1.84% but Solana and Cardano both declining by almost 7%.

Bitcoin was changing hands for $51,360 at 6:12 a.m. ET, according to The Block's Price Page.

The GM 30 Index, representing a selection of the top 30 cryptocurrencies, slipped 2.28% to 111.90 in the past 24 hours.