Spot Bitcoin ETFs Gain Huge Trading Volume
On January 16, spot Bitcoin ETFs generated $1.8 billion in volume, which was three times more than the combined trading volume of all 500 ETFs launched in the US in 2023. In the first three days of trading, these new ETFs amassed a total volume of $10 billion, with top contributors being Blackrock, Grayscale, and Fidelity.
BlackRock, Grayscale And Fidelity Continue Spot Bitcoin ETF Dominance
BlackRock, Grayscale, and Fidelity accounted for $1.6 billion of the $1.8 billion volume on Jan 16. BlackRock’s iShares Bitcoin Trust attracted the most net inflows, raking in over $497 million. Grayscale’s Bitcoin fund had a trade volume of more than $5.1 billion but suffered some outflows due to investors seeking lower fees in new products.
Since Jan. 11, the Grayscale Bitcoin Trust (GBTC) recorded over $579 million in total outflows. Eric Balchunas predicted that BlackRock’s ETF would continue to attract the most inflows and potentially overtake GBTC as the Liquidity King.
BlackRock Appeals To Wealthier Older Generation
BlackRock’s early success in the spot Bitcoin ETF market is attributed to its simple advertising approach, targeting wealthy boomer investors and appealing to a mature, wealthy demographic. The US head of thematics and alternative ETFs at BlackRock, Jay Jacobs, outlined Bitcoin’s value proposition and explained how investors can gain exposure to BTC. This resulted in more than $1 billion in volume during the first day of trading for BlackRock’s spot Bitcoin ETF.
Hot Take
ETFs for spot Bitcoin trading have significantly outperformed their counterparts. BlackRock, Grayscale, and Fidelity have been the major players in this area, with BlackRock’s iShares Bitcoin Trust leading in attracting net inflows, while Grayscale’s Bitcoin fund tops trading activity. The success of these ETFs can be attributed to various factors, such as their appeal to a wealthier and older investor base.
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