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In a historic week for the cryptocurrency market, U.S. Bitcoin spot exchange-traded funds (ETFs) have witnessed a staggering trading volume of nearly $10 billion within just three days. Analysts have closely observed the performance of major ETFs, including Grayscale GBTC, BlackRock’s IBIT, and FBTC, as the market experiences both highs and lows.
Bloomberg analyst James Seyffart reported that the total trading volume of U.S. Bitcoin spot ETFs reached $9.771 billion, with Grayscale GBTC leading the pack at $5.174 billion, followed by BlackRock’s IBIT at $1.997 billion and FBTC at $1.479 billion. Seyffart characterized these launches as “very successful,” acknowledging Wisdomtree’s lower asset value but noting it’s only the third day, terming it a “LONG race.”
Eleanor Terrett, a journalist at FoxBusiness, engaged Seyffart in a discussion on the perceived success of the launches. Seyffart emphasized that, by most metrics, the ETFs had achieved significant success, with the exception of Wisdomtree, which he deemed as a potential contender in the longer term.
By most any metric — these are all very successful launches. The only caveat to that might be Wisdomtree at just $3.25 mln in assets but its only day 3 — this is a LONG race.
— James Seyffart (@JSeyff) January 16, 2024
Rollercoaster Ride For Bitcoin
The entry of ten new spot ETFs into the U.S. market has ushered in a period of unprecedented volatility for Bitcoin. Glassnode’s recent report highlighted the roller-coaster ride, showcasing both multi-year highs and year-to-date lows for Bitcoin prices. The SEC’s approval of these ETFs marked a pivotal moment, bringing traditional finance further into the realm of cryptocurrency.
2024 has opened with a roller-coaster ride for #Bitcoin, as ten new spot ETFs begin trading in US markets.
The event was historic and chaotic, with BTC prices setting both new multi-year highs, and YTD lows. Bitcoin has welcomed traditional finance into it’s world.
— glassnode (@glassnode) January 16, 2024
However, the approval process was not without its share of drama, with false starts on January 9th and 10th. BTC prices experienced spikes and subsequent sell-offs as confusion ensued. Eventually, full confirmation was received, and trading commenced on January 11th.
Over the first two days of trading, combined spot ETF volumes exceeded $7.823 billion, attracting over $1.4 billion worth of assets under management (AUM). Despite outflows from the now-converted GBTC ETF product, GBTC remains a dominant force, accounting for approximately 57% of the total trade volume.
LATEST: With two days in the books, the Nine Newborns have taken in +$1.4b in new cash, overwhelming $GBTC‘s -$579m of outflows for net total of +$819m. $IBIT now leading pack w/ half a bil, Fidelity close second tho. The newborns’ $3.6b in trading volume on 500k indiv trades… pic.twitter.com/b7U5DjENaw
— Eric Balchunas (@EricBalchunas) January 13, 2024
The total holdings of U.S. spot ETFs now include a substantial 644,860 BTC, equivalent to approximately $27.2 billion, constituting 29.7% of global ETF holdings after just two days of trading. Analysts argue that this marks one of the most significant ETF launches in history, signaling a new phase in Bitcoin’s maturation process.
As Bitcoin investors continue to debate the impact of these events, market indicators such as futures open interest, options market dynamics, and long-term holder behavior suggest a complex landscape. With the ETFs now in play, the question remains whether the influx of demand will sustain Bitcoin’s upward trajectory, challenging the notion that these developments were already priced in.
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