Bitcoin Spot ETF Trading Volume Reaches Nearly Billions, Europeans Also Join in Buying? Holding Over 60,000 BTC
Bitcoin spot ETF entered its third day of trading yesterday, with a total trading volume of nearly billions of dollars. Balyeard’s IBIT alone has a higher trading volume than all the ETFs launched in 2023. Currently, the total market value of 11 ETFs is $27.9 billion, holding approximately 64,883 bitcoins, but it still seems to be far from MicroStrategy’s 189,150 bitcoins.
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Trading volume reaches billions of dollars, IBIT surpasses all new ETFs in 2023
Grayscale GBTC trading volume of $5.1 billion
Shifting from European exchange-traded commodities to the United States
ARKB sells BITO and buys its own ARKB
Bloomberg ETF analyst James Seyffart tweeted that the total trading volume of Bitcoin spot ETF in the past three days has approached $10 billion.
Eric Balchunas explained how exaggerated such trading volume is:
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A total of 500 ETFs were launched in 2023, with a total trading volume of $450 million so far. The highest trading volume of an ETF is $45 million. Balyeard’s IBIT alone has a higher trading volume than all the ETFs launched in 2023.
Many people questioned whether more than half of the trading volume comes from Grayscale’s GBTC. However, its net outflow in the past two days was only $579 million, which does not seem to be as expected: investors selling GBTC heavily and moving to other fund issuers.
According to data from the BitMEX research team, people are shifting from high-fee European ETPs to low-fee US ETFs. In these three days, the four major European Bitcoin ETPs have had a net outflow of $75.2 million.
According to Ark Invest Daily data, Cathie Wood’s ARK Invest bought 385,427 shares of their own Bitcoin spot ETF ARKB (worth about $16.77 million) through ARKW on 1/16 and sold 757,664 shares of BITO (worth about $15.84 million). This aligns with our initial prediction: selling GBTC first and buying BITO to pave the way for ARKB.
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The end of the grayscale era? Ark clears all GBTC and buys BITO
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ARKB
BITO
GBTC
IBIT
Bitcoin spot ETF
Further reading
Arthur Hayes: Bitcoin ETF opens doors for traditional finance, what trading opportunities will it create?
The hidden costs of Bitcoin spot ETF that you must know, a list of BTC investment methods and fees.
