BlackRock's Bitcoin ETF IBIT maintained its lead in total volume on its third day of trading, generating buzz for its potential to become the largest holder of Bitcoin (BTC).
The third day of competition between newly launched Bitcoin spot ETFs – the so-called “Newborn Nine” – saw total volume in line with industry expectations, hovering around the $500 million mark, according to the latest market data dated January 16 .
This is a continuation of the robust performance witnessed in the days following the highly anticipated launch of these investment vehicles.
BlackRock is building up BTC hoardings
According to Bloomberg ETF analyst Eric Balchunas, BlackRock's position is strengthening and it is a matter of “when” rather than “if” that they will overtake tech giant MicroStrategy in Bitcoin holdings.
Balchunas' findings have sparked conversations among investors, with many closely watching BlackRock's aggressive moves in the cryptocurrency space.
The BlackRock iShares ETF, with its impressive inflow and volume numbers, is currently poised to challenge the Grayscale Bitcoin Trust (GBTC), which is currently considered the “King of Liquidity” due to its long-standing presence in the market and a significant amount of liquidity holders.
IBIT saw significant inflows of around $497.7 million in the first two days, resulting in BlackRock raising around 11,500 BTC for its fund.
Fidelity Investments' FBTC closely followed IBIT's lead, with notable total inflows of $422.3 million over the same period. The ETF also managed to maintain its trading volume, which stood at $170.1 million on the third day.
The two ETFs together accounted for over $3.1 billion of total trading volume to date, most of which was inflows.
Meanwhile, the two established ETFs – GBTC and ProShares' BITO – accounted for over 60% of the total volume at $4.65 billion and $3.26 billion, respectively. Despite high trading volume, the two ETFs largely saw outflows as investors sold after recovering last year's losses.
Exceed the benchmark
The success of these new Bitcoin ETFs, particularly when compared to the launch of ProShares' BITO ETF, suggests a maturing market that is increasingly receptive to cryptocurrencies as an investment vehicle. BITO previously made headlines as the most successful organic launch in ETF history and set a high benchmark for subsequent offerings.
Market analysts suggest that the initial success of the “Newborn Nine” could be an indication of the long-term viability of Bitcoin ETFs. Despite the usual drop in trading volumes post-launch, the consistency observed in the first three trading days suggests healthy demand for cryptocurrency-based investment options.
As the market closes for the third day, all eyes are on BlackRock and whether its ETF can maintain the momentum to overtake GBTC in the race for Bitcoin supremacy. As ETFs become a crucial entry point into the world of cryptocurrencies for institutional and retail investors, what happens in these early days could well set the tone for the future of investing in digital assets.
BTC price and market data
At press time, Bitcoin is ranked #1 in terms of market capitalization, which is also the case for BTC price high 1.73% in the last 24 hours. BTC has a market capitalization of $848.94 billion with a 24-hour trading volume of $24.19 billion. Learn more about BTC ›
BTCUSD chart from TradingView
Market overview
At press time, the global cryptocurrency market is valued at at $1.71 trillion with a 24-hour volume of $58.69 billion. Bitcoin dominance is currently at 49.71%. Find out more >
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