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January 17, 2024Bitcoin ETFs top 3X daily volume of all 500 ETFs launched in 2023 combined
On January 16, the combined trading volume of 10 newly approved spot Bitcoin ETFs surpassed the total volume of all 500 ETFs launched in 2023 by more than threefold.
According to data compiled by Cointelegraph from Yahoo Finance, these Bitcoin ETFs, including those from Grayscale, BlackRock, and Fidelity, amassed a total volume of just over $1.8 billion on that day, with $1.6 billion attributed to the aforementioned firms.
In contrast, the total trading volume for the 500 ETFs introduced in the United States in 2023 was around $450 million on the same day, as reported by Bloomberg ETF analyst Eric Balchunas. The new spot Bitcoin ETFs reached a near $10 billion total volume in their first three days, based on figures from Bloomberg’s James Seyffart and Yahoo Finance data compiled by Cointelegraph.
Grayscale’s Bitcoin Fund Performance
Grayscale’s Bitcoin fund remains the top in trading volume, exceeding $5.1 billion, despite seeing significant outflows as investors reduce their Bitcoin exposure. Since its debut on January 11, the Grayscale Bitcoin Trust (GBTC) has experienced over $579 million in outflows.
Balchunas noted that BlackRock’s product is likely to continue attracting the most inflows, potentially surpassing GBTC as the top liquidity provider.
The Shift in Grayscale’s Investment Strategy
Previously, investors profited from Grayscale’s premium by borrowing to invest in GBTC and selling when the premium, a marker of Bitcoin demand, was high.
However, this strategy led to substantial losses when the premium turned into a discount, trapping many in the fund at a significant loss. With GBTC’s conversion to a spot ETF, the discount has dropped to as low as 1.55%, allowing investors who had their Bitcoin tied up for long periods to finally exit.
