Decrease in Trading Activity for Bitcoin ETFs
On Tuesday, the third day of trading for the U.S.-based spot bitcoin exchange-traded fund (ETF), there was a noticeable decrease in activity. Trading volumes fell by 37% compared to the levels seen on Jan. 12, 2024. Most funds ended the day slightly over 1% lower against the U.S. dollar. Grayscale’s GBTC dominated the trading volume, capturing the majority of the market share.
Trading Volume of $1.94 Billion for Bitcoin ETFs
When compared to the initial two days of trading, the third day exhibited less trading activity. The total trading volume for the ten U.S.-focused spot BTC ETFs amounted to $1.94 billion. The previous day recorded $3.15 billion in global trade volume, and the total volume across all three days of trading reached $9.63 billion.
GBTC and IBIT Lead in Trading Volume
Grayscale’s GBTC and Blackrock’s IBIT dominated the trading volume, with GBTC accounting for $1.01 billion and IBIT recording $372.31 million. The Fidelity Wise Origin Bitcoin Fund (FBTC) and Ark Invest and 21shares’ ARKB ETF also saw significant trading, with $322.82 million and $124.52 million respectively. These four ETFs comprised 94.32% of the day’s volume.
Analysis of Trading Volume by Bloomberg Analyst
Bloomberg’s senior ETF analyst, Eric Balchunas, commented on the decrease in trading volume. He compared it to the “dropoff rate” of BITO, which is considered the most successful organic launch in ETF history. Despite the decrease in trading activity, bitcoin prices have remained rangebound since the ETFs launched, with a 1.2% decline on Jan. 17, 2024.
Impressive Performance of Bitcoin ETFs
Later in the evening, Balchunas highlighted the remarkable performance of the ten spot BTC ETFs over the three-day run, reaching nearly $10 billion in trading volume. He emphasized the significance of this volume by comparing it to other ETFs. Additionally, Balchunas noted that some of the Bitcoin ETFs surpassed the activity of the entire 2023 Freshman Class of ETFs.
Hot Take: Bitcoin ETF Trading Volume Declines on the Third Day
On the third day of trading for U.S.-based spot Bitcoin ETFs, there was a decrease in trading activity, resulting in a 37% decline in trading volumes compared to the previous day. Grayscale’s GBTC dominated the trading volume, while the overall total trading volume for the ten Bitcoin-focused ETFs amounted to $1.94 billion. Despite this decline, the ETFs reached a total trading volume of nearly $10 billion over the three-day period. This performance is considered impressive, and it highlights the growing demand for Bitcoin ETFs in the market.
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