Bitcoin spot ETF entered its third day of trading yesterday, with a total trading volume of nearly billions of dollars. The trading volume of just BlackRock’s IBIT alone is higher than all the ETFs launched in 2023. Currently, the total market value of 11 ETFs is 27.9 billion dollars, which is approximately equivalent to 64,883 bitcoins. However, it still has a long way to go compared to MicroStrategy’s 189,150 bitcoins.
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Trading Volume Reaches Billions of Dollars, IBIT Outperforms All New ETFs in 2023
Grayscale GBTC Trading Volume of 5.1 billion dollars
Shifting from European Exchange-Traded Commodities to the US
Ark Sells BITO to Buy Its Own ARKB
Bloomberg ETF analyst James Seyffart tweeted that the total trading volume of Bitcoin spot ETF in the past three days has reached nearly 10 billion dollars.
Eric Balchunas explained how exaggerated this trading volume is:
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A total of 500 ETFs were launched in 2023, with a total trading volume of 450 million dollars. The highest trading volume for an ETF was 45 million dollars. Just BlackRock’s IBIT alone has a higher trading volume than all the ETFs launched in 2023.
Many people questioned whether more than half of this trading volume came from Grayscale’s GBTC. However, its net outflow in the past two days was only 579 million dollars, which seems to be not as expected: investors selling GBTC heavily and moving to other fund issuers.
According to data from BitMEX research team, people are shifting from high-cost European ETPs to low-cost US ETFs. In these three days, the four largest Bitcoin ETPs in Europe saw a capital outflow of 75.2 million dollars.
According to Ark Invest Daily’s data, Cathie Wood’s ARK Invest bought 385,427 shares of its own Bitcoin spot ETF ARKB (worth about 16.77 million dollars) through ARKW on 1/16, and sold 757,664 shares of BITO (worth about 15.84 million dollars). This is consistent with our initial prediction: selling GBTC first, buying BITO, paving the way for ARKB.
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The end of the Grayscale era? Ark sells all GBTC and buys BITO
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ARKB
BITO
GBTC
IBIT
Bitcoin spot ETF
Further Reading
Arthur Hayes: Bitcoin ETF opens doors for traditional finance, what trading opportunities will it create?
Unavoidable hidden costs of Bitcoin spot ETF, a list of BTC investment methods and costs.