First Bitcoin Futures ETF Records $1.7 Billion in Weekly Trading Volume: Bloomberg Analyst
The latest data reveals that the first Bitcoin (BTC) exchange-traded fund (ETF) registered its highest weekly trading volume since its inception. According to senior Bloomberg ETF analyst Eric Balchunas, ProShares’ BTC futures ETF, BITO, recorded $1.7 billion in trading volume, while the Grayscale Bitcoin Trust (GBTC) saw $800 million.
Balchunas believes these numbers indicate a strong demand for Bitcoin ETFs. He notes that although BlackRock’s spot market Bitcoin ETF may not set a record when approved, BTC ETFs with high volume could attract marquee investors like hedge funds and large financial institutions.
In response to a question about why BlackRock’s ETF may not set a record, Balchunas explains that multiple ETFs will likely be launched simultaneously, which would spread out the trading volume among them. However, he acknowledges that the high volume of BTC ETFs is crucial in attracting larger institutional investors.
Hot Take: Bitcoin ETF Trading Volume Soars, Indicating Strong Market Demand
The surge in trading volume for the first Bitcoin futures ETF demonstrates a robust appetite for cryptocurrency investment products. With ProShares’ BITO recording $1.7 billion in weekly trading volume and the Grayscale Bitcoin Trust (GBTC) seeing $800 million, it is clear that there is significant interest in Bitcoin ETFs.
This high volume could pave the way for more institutional investors to enter the crypto market. Hedge funds and large financial institutions are more likely to consider investing in Bitcoin through ETFs when they see substantial trading activity and liquidity. As more BTC ETFs are launched, it will be interesting to see how this market evolves and whether it continues to attract significant trading volumes.
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