Bitcoin spot ETF trading volume exceeds $4 billion on first day; Grayscale leads the way

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A physical Bitcoin ETF made its debut on the U.S. stock market on Thursday, with more than $4 billion in trading volume. Bitcoin itself was up 1.6% from the previous day, and at one point soared to just below $49,000, but then fell back and continued to fluctuate wildly.

Source: Binance

On the first day of Bitcoin ETF trading, Grayscale’s GBTC led the trading volume with $2.09 billion. BlackRock’s IBIT, which is attracting attention and is the largest asset management company, came in second place with $1 billion.

HOME STRETCH: $IBIT has just passed $1b in volume today (will break $BITO‘s record) w/ group hitting $4.3b or $2.2b ex-GBTC (which isn’t ‘new’ per se). Also good sign to see 4 issuers over $100m. Strong middle class in the works. Easily the biggest Day One splash in ETF history. pic.twitter.com/LeVJKvWj3V

— Eric Balchunas (@EricBalchunas) January 11, 2024

And in third place is Fidelity’s FBTC with $670 million. Ark’s ARKB follows with $270 million. Meanwhile, the Hashdex ETF was also approved yesterday, but it has not yet been listed and in fact only 10 stocks were traded.

As for Grayscale GBTC, Bloomberg ETF expert Eric Balchunas estimates that most of the volume will be “all sold.” GBTC was converted from investment trust GBTC and was already in circulation. On the other hand, we believe that the majority of the trading volume for BlackRock and Fidelity is due to new capital inflows, as each ETF is a completely new product.

Re what all these dollars flying around means. For the 10 fresh ETFs volume = buying btc today. Clear cut. But, GBTC volume prob ALL selling and maybe $BITO has some too so likely a lot offsetting going on. Just my take tho, not 100%, we’ll know more when flows hit tonight

— Eric Balchunas (@EricBalchunas) January 11, 2024

The first-day performance of the US Bitcoin spot ETF is attracting a lot of attention from investors. Financial giants such as J.P. Morgan, Goldman Sachs and Standard Chartered predict that new capital inflows from institutional and individual investors will reach up to $100 billion this year, and are targeting investors as a new asset class. We expect it to expand.

connection: Goldman Sachs executive “Bitcoin spot ETF will increase institutional investors’ interest in cryptocurrencies”

connection: “Possibility of capital inflows of over 14 trillion yen to Bitcoin spot ETF this year” Analysis by Standard Chartered Bank

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