Bitcoin It bounced back on Tuesday after a massive selloff at the beginning of the week, gaining nearly 6% in the last 24 hours. The rebound helped drive heavy activity in crypto-related exchange-traded funds (ETFs), particularly BlackRock’s iShares Bitcoin Trust (IBIT), which was one of the most traded ETFs in the US on the day.
According to Barchart data, IBIT saw trading volume of nearly $3.7 billion on Tuesday, surpassing Vanguard’s (VOO) S&P 500 ETF, which recorded $3.28 billion. This puts BlackRock’s Bitcoin fund in rare company with the most liquid and widely held ETFs on the market.
The increase in volume may be linked to the improvement in Bitcoin’s price, but it also came a day after Vanguard, long resistant to crypto, said it would begin allowing Bitcoin ETFs and crypto mutual funds to trade on its brokerage platform.
Despite launching less than two years ago, BlackRock’s Bitcoin funds have quickly become a cornerstone of the company’s product lineup. IBIT alone now has $66.3 billion in net assets and has become the firm’s top revenue-generating ETF. It is noteworthy that BlackRock manages more than 1,400 ETFs and has total assets under management of $13.4 trillion.
Cryptos across the board also traded higher on Tuesday, along with Ether xrp and All are up by about 7% in the last 24 hours. Cardano’s native token, ADA, is leading the race with 14%. Chainlink’s token, LINK, was also 11% higher on Tuesday after Grayscale launched a new ETF tied to the token on NYSE Arca.
The surge in Bitcoin prices on Tuesday also impacted crypto-related stocks. Shares of the strategy (MSTR), which has more than 174,000 BTC on its balance sheet, rose 6%. Trading platform Robinhood (HOOD), which offers stocks as well as crypto services, rose 2%. CoinDesk parent company Bullish (BLSH) climbed 5%, and Circle (CRLC), the company behind the USDC stablecoin, added 4%.
Coinbase (COIN) went in the opposite direction. Its shares fell 5% after a group of shareholders filed a lawsuit Monday accusing company executives of engaging in a years-long scheme to unload billions of dollars in stock while misleading investors. The lawsuit claims that insiders took advantage of Coinbase’s inflated valuation following its 2021 public listing to cash out at the expense of long-term shareholders.
The picture looked less rosy for Bitcoin mining stocks. Despite the broader crypto market’s rebound, most miners traded in the red on Tuesday. Irene (IREN) shares fell 15%, followed by Cipher Mining (CIFR) shares, which fell 10%, and Terawolf (WULF) shares, which fell 7%.