Bitcoin ETF: High Trading Activity Marks Day Two, GBTC Stands Out

Day Two With volumes close to $900 million, trading in Bitcoin ETFs increased as Bitwise and Grayscale Bitcoin Trust demonstrated impressive results.

At the time of publication, trading volumes for the new Bitcoin exchange-traded funds (ETFs) were close to $900 million on the second day of trading. Senior ETF analyst at Bloomberg, Eric Balchunas, noted that Friday’s numbers considerably exceeded those from the first day.

Investor interest has been piqued in the group of recently introduced exchange-traded funds (ETFs), which Balchunas dubbed the “Nine Newborns.” Trading volumes indicate a robust demand for financial products associated with Bitcoin.

The Grayscale Bitcoin Trust (GBTC), in particular, saw its volume soar to $1.2 billion on its own. The fund’s initial day’s flows were approximately negative $95 million.

A report card on the flow of Bitcoin ETFs

The two most notable players on the first day were the Bitwise and Fidelity Advantage Bitcoin ETFs. $237.9 million was drawn to the former, and $227.0 million to the latter. Other exchange-traded funds (ETFs) such as ARKB and IBIT also saw strong inflows, albeit at a slower rate overall.

The first day’s flow is improved by the trading data on the second day. This may be an indication of a market that was responsive and quick to adjust.

With GBTC excluded, trading activity picked up steam on the second day, reaching nearly $900 million in total volumes. With $401.6 million, BlackRock’s iShares Bitcoin Trust was the day’s top performer. FBTC came in second with a solid $291.0 million showing.

Not every individual would make it.

A bullish trend is shown by the flow report following the planned launch day. Balchunas observes that by day’s end, GBTC may have more positive flow.

Consolidation predictions were recently made for the Bitcoin ETF products by Cathie Wood, CEO of Ark Invest. Out of the eleven ETFs, Wood stated that she believes only three to four will be able to endure long-term market pressure.

These funds need to stay competitive and draw significant inflows in order to survive. This ought to occur while the ETPs are generating sufficient income.

Leave a Comment