- Unprecedented Trading Volume: The Bitcoin ETF reached close to $10 billion in total volume after just three days of trading, indicating an unprecedented level of interest in this investment product.
- Changing market dynamics: BlackRock’s iShares Bitcoin Trust is gaining momentum, challenging Grayscale’s traditional dominance. The changing dynamics suggest evolving investor preferences and highlight the competitive landscape within the cryptocurrency investment sector.
On January 16th, the spot Bitcoin ETF had an incredible performance, with daily trading volume reaching $1.8 billion. This figure more than triples the total trading volume of the 500 ETFs launched in 2023. The surge in popularity of Bitcoin ETFs indicates a growing appetite for cryptocurrency investments.
Bitcoin ETFs Dominate Daily Trading
The total trading volume of the 10 recently approved spot Bitcoin ETFs on January 16th was particularly noteworthy. These ETFs include the following products: grayscale, black stoneand fidelity, contributing significantly to daily trading volume of $1.8 billion. In comparison, the total trading volume of all 500 ETFs launched in the United States in 2023 was only $450 million, highlighting the overwhelming interest in Bitcoin-related investment products.
Let me explain how crazy $10 billion trading volume in the first three days is. By 2023, 500 ETFs will be launched. Currently, these ETFs have a total trading volume of $450 million. The best one earned $45 million. And for many, it took months to get started. $GO He alone is showing more activity than the entire class of 23 freshmen… https://t.co/wV1zQFtPW1
— Eric Balchunas (@EricBalchunas) January 16, 2024
BlackRock’s iShares Bitcoin Trust Leads Inflows
Among Bitcoin ETFs, BlackRock’s iShares Bitcoin Trust emerged as the leader in attracting net inflows. BlackRock’s product, which has generated more than $497 million in the past three days, has proven its appeal to investors. This surge in net inflows signals a potential change in market dynamics, positioning it as a strong contender to surpass Grayscale’s Bitcoin fund.
Grayscale faces outflow despite high trading volume
Grayscale’s Bitcoin fund maintained its lead in total volume, exceeding $5.1 billion, but faced significant outflows. In particular, Grayscale Bitcoin Trust (GBTC) has seen total outflows exceed $579 million since it began trading on January 11. Analysts predict that BlackRock’s product could replace GBTC as the “liquidity king” due to its continued appeal to investors.
Latest: Day 3 volume of healthy newborn Nine so far is 500 million units, roughly the same as the pattern decline. $LITTLE (This was also the most successful organic launch in ETF history). $GO Maintain the lead with the highest chance of overtaking $GBTC As the liquidity king. pic.twitter.com/hoatfSmNpN
— Eric Balchunas (@EricBalchunas) January 16, 2024