Battle for Market Share Begins!
On the inaugural day of trading for several new Bitcoin exchange-traded funds (ETFs), there was robust market activity, with a total trading volume exceeding $4.5 billion across ten spot Bitcoin ETFs. BlackRock’s iShares Bitcoin ETF (IBIT) led with over $1 billion in volume, representing 22% of the total volume for the listed funds. Fidelity’s spot Bitcoin ETF (FBTC) closely followed, amassing approximately $685 million in day one trading volume, indicating substantial investor interest.
700K ETF Transactions, $4.33B Volume—What Next?
Grayscale’s Bitcoin ETF (GBTC) notched an impressive $2.2 billion in total volume, reflecting the conversion of its pre-existing Grayscale Bitcoin Trust. The ProShares Futures Bitcoin ETF (BITO) also made waves with record-breaking trading activity, surpassing $2 billion in total volume. Hashdex missed the ETF Train and a bigger opportunity to be listed among spot Bitcoin ETFs due to the SEC’s approval of its 19b-4 filing, resulting in the fund trading as a futures-based ETF and not holding any spot Bitcoin.
Price Volatility Expected
Bloomberg ETF analysts, including Eric Balchunas, noted 700,000 individual transactions on the first day of the spot Bitcoin ETFs’ launch, with a total trading volume of $4.33 billion. The significant buying activity across these ETFs is estimated to require the purchase of approximately 47,000 Bitcoin, valued at $2.1 billion at current prices, on the spot market.
Hot Take
Despite the enthusiasm and substantial trading volumes, the true impact of these ETFs on underlying Bitcoin purchases may take some time to materialize, offering a clearer understanding of spot inflows in the coming days. The elevated level of individual transactions and the overall trading volume on the first day underscore the heightened interest and participation of investors in the newly listed Bitcoin ETFs.
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