Bitcoin ETFs top 3X daily volume of all 500 ETFs launched in 2023 combined
The total volume across 10 spot Bitcoin ( BTC ) exchange-traded funds (ETFs) on Jan. 16 has, on the same day, outpaced the total volume for all 500 ETFs launched in 2023 more than three times over.
Yahoo Finance data compiled by Cointelegraph shows the 10 recently approved spot Bitcoin ETFs generated just over $1.8 billion in total volume on Jan. 16, with funds offered by Grayscale, BlackRock and Fidelity accounting for $1.6 billion of the total.
In comparison, the combined Jan. 16 trading volume for all 500 ETFs launched in the United States in 2023 at just $450 million, according to Bloomberg ETF analyst Eric Balchunas.
Let me put into context how insane $10b in volume is in first 3 days. There were 500 ETFs launched in 2023. Today, they did a COMBINDED $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… https://t.co/wV1zQFtPW1
— Eric Balchunas (@EricBalchunas) January 16, 2024
BlackRock’s iShares Bitcoin Trust emerged as the clear leader in terms of attracting net inflows, with more than $497 million over the past three days.
The total volume across all of the new spot Bitcoin ETF products reached nearly $10 billion across the first three days of trading, according to figures by Bloomberg ETF analyst James Seyffart and Yahoo Finance data compiled by Cointelegraph.
While Grayscale’s Bitcoin fund still leads the pack in total trading volume — notching more than $5.1 billion — the fund has experienced considerable outflows as investors seek to reduce exposure.
The Grayscale Bitcoin Trust (GBTC) has witnessed more than $579 million in total outflows since it began trading on Jan. 11. Balchunas added that BlackRock’s product would continue to attract the most inflows making it the “most likely to overtake GBTC as Liquidity King.”
LATEST: Day Three volume so far half a billion for the Newborn Nine which is healthy, about the same pattern dropoff rate as $BITO (which again was the most successful organic launch in ETF history). $IBIT keeping lead to be one most likely to overtake $GBTC as Liquidity King. pic.twitter.com/hoatfSmNpN
— Eric Balchunas (@EricBalchunas) January 16, 2024
GBTC was once a boon for investors who would borrow money to enter the fund and then take profit from the Grayscale’s premium — typically used as a gauge for Bitcoin demand in the years before spot ETF products were available.
Related: Fake spot Bitcoin ETF tweet ‘likely wasn’t the SEC,’ says Blockchain Association director
The profitability of this arbitrage trade rapidly backflipped into outsized losses when the premium suddenly became a discount, which trapped many investors in the fund, unwilling to sell their Bitcoin at a steep discount.
The GBTC premium suddenly fell into a steep discount in March 2021. Source: YChartsFollowing GBTC’s successful conversion to a spot ETF, the discount has fallen as low as 1.55%, with investors who had their Bitcoin locked up for extended periods now taking the opportunity to get out.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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