$9.6 Billion in 3 Days — ETF Analyst Highlights Remarkable Early Success of Bitcoin ETFs

The early success of Bitcoin ETFs has been nothing short of remarkable, with trading volumes soaring to $9.6 billion in just three days. However, on the third day of trading, there was a noticeable decrease in activity, with trading volumes falling by 37% compared to the previous day. Grayscale’s GBTC emerged as the dominant player, capturing the lion’s share of the trading volume. Despite this slight dip in trading vigor, the overall performance of the ten U.S.-focused spot Bitcoin ETFs remains impressive, solidifying their place in the market. Bloomberg’s senior ETF analyst, Eric Balchunas, praised the ETFs’ early performance, comparing it to the most successful organic launch in ETF history. With Bitcoin prices remaining rangebound since the ETFs’ launch, it will be interesting to see how the market evolves in the coming days.

Grayscale’s GBTC Dominates as Bitcoin ETF Trading on Tuesday Taps $1.94 Billion

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 with trading volumes falling by 37% from the levels seen on Jan. 12, 2024. The day concluded with most funds slightly over 1% lower against the U.S. dollar, with Grayscale’s GBTC capturing the lion’s share of the trading volume.

Trading Volumes Decrease on Third Day

This downturn in trading vigor was evident when compared to the initial two days for the nine newly introduced spot bitcoin ETFs, along with the recently converted GBTC ETF. Market data revealed that the total trading volume for the ten U.S.-focused spot BTC ETFs amounted to a total of $1.94 billion. The day prior saw $3.15 billion in global trade volume and to date, $9.63 billion has been recorded across all three days of trading.

Total Trading Volume for Bitcoin ETFs

When analyzing the trading volume of the ten bitcoin ETFs, it is evident that GBTC and Blackrock’s IBIT dominated the market, with GBTC registering a significant $1.01 billion and IBIT recording $372.31 million. The Fidelity Wise Origin Bitcoin Fund (FBTC) also experienced substantial trading, with $322.82 million, while Ark Invest and 21shares’ ARKB ETF observed $124.52 million in trades. These four funds accounted for $1.83 billion or 94.32% of the day’s trading volume.

GBTC and IBIT Lead in Trading Volume

Grayscale’s GBTC and Blackrock’s IBIT stood out as the leading bitcoin ETFs in terms of trading volume. GBTC’s dominance, with $1.01 billion in trading volume, signifies the trust and confidence that investors have in Grayscale’s offerings. Similarly, IBIT’s trading volume of $372.31 million showcases the popularity of Blackrock’s product among traders.

Significant Trading Volume for FBTC, ARKB

In addition to GBTC and IBIT, the Fidelity Wise Origin Bitcoin Fund (FBTC) witnessed substantial trading volume, with $322.82 million. This indicates that investors see value in Fidelity’s bitcoin ETF and are actively engaging in trading activities. Ark Invest and 21shares’ ARKB ETF also achieved notable trading volume, with $124.52 million. These two funds, along with GBTC and IBIT, collectively contributed to the majority of the day’s trading volume.

Observations from Bloomberg’s Senior ETF Analyst

Bloomberg’s senior ETF analyst, Eric Balchunas, commented on the trading volume, noting a “dropoff rate” similar to that of BITO, which he described as “the most successful organic launch in ETF history.” Balchunas’ observation highlights the significance of the trading volume and suggests that the bitcoin ETFs are garnering considerable attention from investors. Despite the decrease in trading volume, the overall success of the bitcoin ETFs is noteworthy.

Bitcoin Prices Remain Rangebound

While the trading volume of bitcoin ETFs has been impressive, bitcoin prices have remained rangebound over the last few days since the ETFs launched. On Jan. 17, 2024, bitcoin (BTC) experienced a 1.2% decline. The stable price range indicates that the introduction of bitcoin ETFs has not caused significant price fluctuations in the market. It will be interesting to see how the prices evolve as more investors enter the market through these ETFs.

Insane Volume of $10 Billion in First 3 Days

The total trading volume of nearly $10 billion across the ten spot bitcoin ETFs over the first three days is remarkable. Bloomberg’s Eric Balchunas emphasized the magnitude of this volume, stating, “Let me put into context how insane $10b in volume is in the first 3 days. Today, they did a COMBINED $450m in volume. The best one did $45m. And many have had months to get going. IBIT alone is seeing more activity than the entire ’23 Freshman Class.” Balchunas’ comparison illustrates the unprecedented success and interest in bitcoin ETFs.

Conclusion

The introduction of bitcoin ETFs in the U.S. market has generated significant excitement and trading activity. Grayscale’s GBTC has dominated the trading volume, followed closely by Blackrock’s IBIT. The Fidelity Wise Origin Bitcoin Fund (FBTC) and Ark Invest and 21shares’ ARKB ETF have also experienced notable trading volume. Bloomberg’s senior ETF analyst observes that the trading volume demonstrates the success and interest in these ETFs. Despite the stable prices of bitcoin in recent days, the future of bitcoin ETFs holds immense potential for investors.

Share Your Thoughts and Opinions

What do you think about the spot bitcoin ETF trade volume over the past three trading days? Share your thoughts and opinions about this subject in the comments section below.