Bitcoin Spot ETFs Make a Splash: 700,000 Trades and $4.33 Billion in Debut
In a historic launch, the first day of trading for spot Bitcoin (BTC) Exchange-Traded Funds (ETFs) has proven to be nothing short of extraordinary. According to Bloomberg ETF analyst Eric Balchunas, the market witnessed a staggering 700,000 individual transactions, signaling a remarkable surge of interest from investors.
The total trading volume for spot BTC ETFs on the inaugural day soared to an impressive $4.33 billion. Notably, Grayscale Bitcoin Trust (GBTC) led the pack with a trading volume of $2.09 billion, followed by Invesco Bitcoin ETF (IBIT) at $1.01 billion, Fidelity Bitcoin ETF (FBTC) at $673 million, and Ark Bitcoin ETF (ARKB) also at $673 million. The newly launched Bitwise 10 Crypto Index Fund (BITO) also made a significant impact with a trading volume of $1.87 billion.
All told there were 700,000 individual trades today in and out of the 11 spot ETFs. For context, that is double the number of trades for $QQQ (altho it sees much bigger $ volume bc bigger fish use it) So a lot more grassroots action (vs big seed buys) than I expected which is… pic.twitter.com/syUGfjHQpr
— Eric Balchunas (@EricBalchunas) January 11, 2024
What stands out in this remarkable debut is the sheer number of individual trades, which totaled 700,000 across the 11 spot ETFs. Eric Balchunas noted that this number is double the amount of trades recorded for the widely known Invesco QQQ Trust (QQQ), which, although seeing larger dollar volumes due to institutional involvement, demonstrates a substantial increase in grassroots investor activity.
Balchunas expressed surprise at the level of individual engagement, stating, “A lot more grassroots action (vs big seed buys) than I expected, which is good.” This sentiment indicates that the launch of spot BTC ETFs has not only attracted institutional players but has also resonated strongly with individual investors.
Among the spot ETFs, Grayscale Bitcoin Trust (GBTC) drew special attention due to its enormous trading volume. Balchunas suggested that the substantial activity in GBTC was likely driven by selling and outflows, as the trust has consistently traded at a discount throughout the trading session. This dynamic hints at a shift in investor sentiment and a potential reassessment of the premium or discount at which GBTC has traditionally traded relative to its net asset value.
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