The Block reports $10 billion in trading volume for bitcoin ETFs
The cumulative trading volume for spot bitcoin ETFs reached over $10 billion on Wednesday, just four days after their launch, according to data compiled by The Block. Notably, Grayscale, BlackRock, and Fidelity dominate the market, accounting for approximately 90% of the total trading volume. While the total volume on Tuesday was $1.8 billion, it fell significantly from the $3 billion recorded on Friday and the $4.6 billion on the first day of trading.
As of Wednesday morning, around $466 million had been traded. BlackRock and Fidelity’s spot bitcoin ETFs attracted the most fresh capital among the 11 crypto-based instruments available on different exchanges. Bloomberg Intelligence senior ETF analyst Eric Balchunas highlighted that each of these two funds had received more than $400 million in inflows.
‘Great news for crypto as an asset class’
In the view of XBTO Senior Trader Douglas Comin, the development of ETFs is excellent news for cryptocurrency as an asset class. It will increase BTC’s visibility among millions of investors and may even attract potential 401(k) investments. However, Comin believes that it will take time for significant inflows to occur, and recent hype may have led short-term traders to seek quick gains.
The price of bitcoin has dropped below $43,000 after reaching over $48,000 last week when the ETFs were launched. At 10:53 a.m. ET, it was valued at $42,569.
Hot Take: Bitcoin ETFs Gain Momentum, But Short-Term Volatility Persists
The rapid growth of bitcoin ETFs in terms of trading volume is an encouraging sign for the crypto asset class. With over $10 billion in cumulative volume within just four days of trading, it is clear that investors are showing interest. However, short-term traders seeking quick gains have contributed to some volatility in the market. While the dominance of major players like Grayscale, BlackRock, and Fidelity is expected, it will take time for significant inflows to build up. Overall, the development of bitcoin ETFs is a positive step towards mainstream adoption and increased accessibility for investors.
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