Spot Bitcoin ETFs See Strong Trading Activity
Spot bitcoin ETFs experienced a busy second day of trading, with a total volume exceeding $5 billion as the price of bitcoin dropped below $45,000. On the first day of trading, these ETFs generated approximately $4.6 billion in buying and selling. On the second day, there was $905 million worth of activity.
Bloomberg Intelligence senior ETF analyst Eric Balchunas described the first day of trading as a “smashing success” in terms of volume, number of trades, flows, and media coverage. Despite limited platform availability, the spot bitcoin ETFs performed exceptionally well.
BlackRock Leads the Way
BlackRock’s newly launched spot bitcoin ETF emerged as the top performer on its first day of trading, generating over $1 billion in trading volume. This made it one of the top 25 performers in ETF history. Grayscale led the funds category on Thursday with $2.3 billion in volume, but their fund is viewed differently as it is a conversion of their flagship GBTC fund. As of Friday morning, Grayscale continued to lead all spot bitcoin ETFs with $470 million in volume, while BlackRock ranked second with $212 million.
Bitwise’s spot bitcoin fund saw significant inflows on Thursday, with $238 million in fresh capital flowing into the fund. Preliminary data suggests that Fidelity and BlackRock followed Bitwise in terms of inflows, with $227 million and $111 million respectively. However, these figures are subject to change and may increase.
Hot Take: Spot Bitcoin ETFs Show Promise for Crypto Investors
The strong trading activity seen in spot bitcoin ETFs over their first two days indicates promising prospects for crypto investors. With cumulative volume surpassing $5 billion and significant inflows into various funds, it is clear that there is considerable interest in these ETFs. BlackRock’s spot bitcoin ETF, in particular, has emerged as a standout performer, generating over $1 billion in trading volume on its first day. This signals a growing acceptance and demand for cryptocurrency investment products among traditional financial institutions and retail investors alike.
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