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Qadir AK
Qadir AK
Author
Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- Jan 12, 2024 04:39 UTC
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Bitcoin ETFs Take Wall Street by Storm: $4.5 Billion Traded on Debut Day!
Over $4.5 billion traded across 10 spot Bitcoin ETFs in the first day, with BlackRock's iShares (IBIT) leading at $1 billion.
Grayscale's Bitcoin ETF saw $2.2 billion, potentially from trust conversions.
High activity with over 700,000 transactions totaling $4.33 billion, suggesting strong investor interest.
The cryptocurrency market kicked off with a bang on the first day of trading for multiple Bitcoin exchange-traded funds (ETFs), witnessing an impressive total trading volume exceeding $4.5 billion across ten spot Bitcoin ETFs.
BlackRock’s iShares Bitcoin ETF (IBIT) took the lead with an impressive $1 billion in trading volume, representing 22% of the total volume traded among the listed funds. Following closely was Fidelity’s spot Bitcoin ETF (FBTC), gathering around $685 million in day one trading volume, signaling a notable surge in investor interest.
Exciting times indeed! But BlackRock wasn’t the only one to rank high! Here’s a deep dive.
Grayscale Makes a Mark
Grayscale’s Bitcoin ETF (GBTC) saw an impressive $2.2 billion in total volume, reflecting the conversion of its pre-existing Grayscale Bitcoin Trust. ProShares Futures Bitcoin ETF (BITO) also made waves, breaking records with a total trading activity exceeding $2 billion, according to Yahoo data.
Bloomberg Analysts, including James Seyffar, suggested that a significant portion of GBTC’s trading volume might involve selling, with investors possibly transitioning to more cost-effective options like BlackRock’s and Fidelity’s ETFs.
Hashdex, unfortunately, missed the ETF train, losing a prime 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 without any spot Bitcoin holdings.
Trending Topic: Bitcoin Halving 2024: Why It Matters & What To Expect
700K ETF Transactions, $4.33B Volume—What’s Next?
On the first day of spot Bitcoin ETFs’ launch, Bloomberg ETF analysts, including Eric Balchunas, reported a staggering 700,000 individual transactions, totaling $4.33 billion. Breakdown figures included GBTC at $2.09 billion, IBIT at $1.01 billion, FBTC at $673 million, and ARKB at $673 million.
BITO contributed $1.87 billion in trading volume. Timothy Peterson, an investment manager at Cane Macro, estimated that the substantial buying activity across these ETFs would necessitate the purchase of approximately 47,000 Bitcoin, valued at $2.1 billion at current prices, on the spot market.
The Shift from Futures to Spots
The ProShares Futures Bitcoin ETF’s significant trading volume exceeding $2 billion signals a notable market transition from futures-based Bitcoin exposure to more economical and less volatile spot-based exposure.
Despite the enthusiasm and substantial trading volumes, the actual 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.
Also Read: Shark Tank’s Kevin O’Leary Deems Spot Bitcoin ETFs “Practically Useless” for Big Investors
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