🌎 Bitcoin ETFs Hit Record Trading Volumes Amid Crypto Market Turmoil

Crypto has faced significant fluctuations over the weekend, but Bitcoin ETFs are experiencing record trading volumes. Despite widespread sell-offs, major financial institutions have yet to offload their holdings.

Within just 20 minutes of the opening bell on Monday, August 5th, Bitcoin ETFs saw a trading volume of $1.3 billion. This volume surged to nearly $3 billion in the first few hours of trading. This increased activity indicates sustained interest from institutional investors, even as the price of Bitcoin dipped below $50,000, marking a 28% decline from its recent peak of $70,000.

Financial Transfers and Institutional Moves

Grayscale, a key player in the crypto market, has been transferring significant amounts of Bitcoin and Ethereum to Coinbase Prime. Currently, Grayscale holds 2.455 million ETH valued at $7.82 billion and 271,743 BTC worth $14.36 billion. These transfers might represent strategic repositioning rather than a complete market exit, but typically, such transfers are associated with sales.

Despite the market downturn, data from Arkham shows that BlackRock and Fidelity, two of the world’s largest asset managers, are not selling their Bitcoin holdings. This points to a long-term bullish outlook from these financial giants, even amid short-term market volatility.

You guys sold all your coins… But BlackRock, MicroStrategy, Grayscale, and Fidelity didn’t.

Additionally, Capula Management, the fourth-largest hedge fund in Europe, recently reported $500 million in Bitcoin ETF holdings. This substantial investment by a major hedge fund could influence other institutional investors to consider Bitcoin, potentially increasing market activity and driving up prices.

Market Factors and Influences

Several factors are contributing to the current market collapse. These include a strong correlation with falling stock markets, geopolitical tensions in the Middle East, changes in the Bank of Japan’s policy, and the U.S. Federal Reserve’s interest rate stance.

On-chain analysts suggest that the liquidation of the market maker Jump Crypto, marked by the sale of 120,000 wETH, has contributed to Ethereum’s decline. Over 100,000 ETH from Jump Trading wallets have been moved to centralized exchanges. Other contributing factors include Mt. Gox’s payments to creditors, weak ETF dynamics, and political changes in the U.S.

Stock Market Disruptions

At least six major trading platforms in the U.S. reported outages and user login issues, including Citi, Fidelity, E-Trade, Vanguard, TD Ameritrade, and Charles Schwab.