Bloomberg Analyst: Bitcoin ETFs Surpass Equities ETFs in Individual Trades
A Bloomberg analyst has revealed that Bitcoin exchange-traded funds (ETFs) are experiencing a higher number of individual trades compared to the top two equities ETFs. This comes just a few months after the launch of Bitcoin ETFs in January. The analyst highlights the significant retail participation in Bitcoin ETFs, with the majority of trades being on the smaller side. The launch of BTC ETFs is seen as Bitcoin’s “initial public offering (IPO) moment” by industry experts.
Bitcoin ETFs Outpace Equities ETFs in Individual Trades
Bloomberg senior ETF analyst Eric Balchunas has shared an interesting statistic on Twitter, stating that Bitcoin ETFs are witnessing more individual trades than the top two equities ETFs. Despite not having options contracts available on many platforms yet, BTC ETFs have already surpassed the SPY and QQQ ETFs in terms of trade volume. Balchunas points out that this suggests a substantial retail component in the trading activity surrounding Bitcoin ETFs.
Retail Traders Behind Volume on Bitcoin ETFs
The majority of transactions on Bitcoin ETFs are relatively small, according to Balchunas. Only a few trades have managed to reach at least $1 million. This indicates that retail traders are primarily responsible for the increased volume on BTC ETFs. Balchunas further adds that there were several $10 million trades and around a dozen $1 million trades, followed by numerous smaller-sized transactions.
Bitcoin ETF Launch as an IPO Moment
Bitwise Invest CEO Hunter Horsely has described the launch of Bitcoin ETFs as Bitcoin’s “initial public offering (IPO) moment.” Balchunas agrees with this assessment, emphasizing how easy, cheap, and standardized ETFs make investing. The fact that BTC ETFs are regulated further adds to their appeal. The launch of Bitcoin ETFs has opened up investment opportunities to any investor with the click of a button.
Bitcoin Price Surge
As of now, Bitcoin is trading at $63,842, representing an 11.69% increase in the past 24 hours. The surge in individual trades on Bitcoin ETFs may have contributed to this price increase.
Hot Take: Retail Traders Driving Bitcoin ETF Trading Volume
Retail traders are playing a significant role in the trading volume of Bitcoin exchange-traded funds (ETFs), according to Bloomberg analyst Eric Balchunas. BTC ETFs are witnessing more individual trades than the top two equities ETFs, SPY and QQQ. The majority of transactions on Bitcoin ETFs are smaller in size, suggesting retail participation. This surge in trading activity is seen as Bitcoin’s “initial public offering (IPO) moment,” making it accessible to any investor with the click of a button. As a result, Bitcoin has experienced an 11.69% price increase in the last 24 hours.
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