Bitcoin ETFs surpass triple the combined daily volume of 500 ETFs launched in 2023

Crypto MARKET_WATCH BTC CRYPTO_NEWS

On Jan. 16, the total volume generated by 10 spot Bitcoin ETFs surpassed the cumulative volume of all 500 ETFs launched in 2023, exceeding it by more than three times.

As per data from Yahoo Finance, the 10 newly approved spot Bitcoin ETFs collectively amassed a trading volume of just above $1.8 billion on Jan. 16, with Grayscale, BlackRock, and Fidelity’s offerings leading the way contributing $1.6 billion to the overall total.

This volume significantly surpassed the combined $450 million trading volume of all 500 ETFs launched in the United States during 2023, as reported by Bloomberg ETF analyst Eric Balchunas.

Despite a notable decline in trading volume since the initial surge – with the third day closing at under $3.1 billion compared to $4.6 billion on the first day – the overall performance remains impressive. In just three days, the total volume for these spot Bitcoin ETF products neared $10 billion, a figure confirmed by Bloomberg’s ETF analyst James Seyffar.

A standout in this scenario is BlackRock’s iShares Bitcoin Trust, which drew over $497 million in net inflows in the past three days. It currently leads in attracting new investments and is poised to potentially surpass Grayscale’s volume, which has been dominant in the crypto-based ETF market.

Grayscale’s ETF, a conversion of its flagship GBTC fund, has seen considerable outflows, shedding over $579 million since its market debut last week. Despite this, the fund maintains approximately $27 billion in assets under management.

Balchunas highlighted the importance of liquidity as a decisive factor for investors choosing among the new spot bitcoin ETFs. This includes considerations such as tighter bid-ask spreads and the ability to execute large trades with minimal impact on price.

Competitors such as Ark Invest and 21Shares, along with Bitwise, also marked their presence in the market, recording trading volumes of approximately $124 million and $52 million, respectively, on Jan. 16. However, offerings from Invesco, VanEck, Franklin Templeton, Valkyrie, and WisdomTree observed more modest volumes of $10 million or less.

Despite the varying performance among the different funds, the overall trading activity for these new ETFs is seen as robust, with a cumulative volume exceeding $9.5 billion over three days. Balchunas compared this trend to the BITO’s launch, which holds the record for the most successful organic launch in ETF history.

Source : crypto.news / Jan 17, 2024

rayn.finance logo

Automata FRANCE SAS

240 rue Evariste Galois,

06410 Biot,

Sophia Antipolis

Automata Pay

65-66 Warwick House 4th

Floor, Queen Street, London

England, EC4R 1EB

Automata Pay Europe Ltd

3rd Floor Ormond Building,

31-36 Ormond Quay Upper,

Dublin 7, D07 Ee37

Automata ICO Ltd

Italian Branch

Via Archimede, 161,

00197 Roma

Italy

The purchase of digital assets is subject to a high market risk and price volatility. Changes in value can be significant and occur rapidly and without warning. Past performance is not a reliable indicator of future performance. The value of an investment and returns can fluctuate both up and down, and you may not recover the amount you invested. RISK WARNING

Automata ICO Limited has a branch in Italy with its registered office at Via Archimede, 161, Roma, Italy, and registered in Italy under number 96550860587 with the Organismo Agenti e Mediatori (OAM) as a Virtual Asset Service Provider (VASP).

Automata France SAS is a company registered in France with the company number 902 498 617. Automata FRANCE SAS is registered with the french Financial Market Authority, l’Autorité des marchés financiers (“AMF”), as a provider of Virtual Asset Service Provider under number E2023-087.

Automata Pay Europe Limited is a partner of Modulr Finance B.V., a company registered in the Netherlands with company number 81852401, which is authorised and regulated by the Dutch Central Bank (DNB) as an Electronic Money Institution (Firm Reference Number: R182870) for the issuance of electronic money and payment services. Your account and related payment services are provided by Modulr Finance B.V. Your funds will be held in one or more segregated accounts and safeguarded in line with the Financial Supervision Act.