Spot Bitcoin ETFs have generated around $10 billion in trading volume in their first three days on the market, with funds from Grayscale Investments and BlackRock continuing to lead competitors in the category.
Grayscale's newly converted Bitcoin Trust ETF (GBTC) saw trading volume of about 25 million shares, or $970 million, on Tuesday, a Blockworks review of Yahoo Finance data showed.
This comes after GBTC's volume on Thursday and Friday was around $2.3 billion and $1.8 billion, respectively.
Read more: Bitcoin ETF tracker
High trading volumes for GBTC meant no net inflow of funds. Last week saw net outflows of $579 million, according to a CoinShares report released on Monday. Recently, GBTC transitioned to an ETF format. Although the trust recently converted into an ETF, it was founded in 2013 and manages around $27 billion in assets.
Segment watchers told Blockworks last week that they expect GBTC to see outflows over time, in part due to its high 1.5% fee compared to competitors.
Read more: Spot Bitcoin ETF debut week inflows lagged 2021 BTC futures launch: CoinShares
BlackRock's iShares Bitcoin Trust (IBIT) saw trading volume of nearly 15 million shares, or about $370 million, on Tuesday. Meanwhile, about 8.2 million shares of Fidelity Wise Origin Bitcoin Fund (FBTC) traded on the day, worth about $310 million.
Bloomberg Intelligence analyst Eric Balchunas said in an X post that BlackRock's IBIT is on track to become the fund “most likely to overtake GBTC as liquidity king.”
Industry observers cited liquidity — tighter bid-ask spreads and capacity for large trades without much impact on price — as a key factor that certain investors would weigh when deciding which spot Bitcoin ETF to buy.
The spot Bitcoin ETF from Ark Invest and 21Shares and rival firm Bitwise had trading volumes of about $124 million and $52 million, respectively, on Tuesday.
Other similar offerings from Invesco, VanEck, Franklin Templeton, Valkyrie and WisdomTree were each worth $10 million or less.
Bitwise initially led in net inflows for spot Bitcoin ETFs. However, traditional financial giants BlackRock and Fidelity outperformed the crypto-focused firm after just the second day, according to data from Bloomberg Intelligence.
Ophelia Snyder, president of 21Shares, told Blockworks that initial trading volumes reflect pent-up demand, noting that she expects “a second wave of activity in the coming weeks and months as this becomes more mainstream.”
Read more: Short-term view of spot Bitcoin ETFs “a mistake,” says 21Shares president
But focusing on short-term flows into such funds is “insanely short-sighted and broadly not the point,” she added.
“It will increase over time,” Snyder said. “That’s why I think the short-term view is a mistake.”
Don't miss the next big story – sign up for our free daily newsletter.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.