- Bitcoin ETF trading volumes have soared to new highs.
- The movement of old whales raised concerns about a possible sell-off.
Optimism inspired by Bitcoin [BTC] The adoption of ETFs slowly decreased after the price of BTC crashed following the event. But despite this, the latest events have raised hopes among traders.
Not the end for Bitcoin ETFs yet?
Despite things seeming boring at first glance, Bitcoin ETFs are slowly but surely starting to make their mark.
According to Bloomberg analyst James Seyffart, the total trading volume of US Bitcoin spot ETFs surpassed $10 billion within three days.
Grayscale GBTC led the pack, with three-day trading volume of $5.174 billion, followed by BlackRock’s IBIT with $1.997 billion and FBTC with $1.479 billion, for a total of $9.771 billion in ETF trading volumes.
Update on the #Bitcoin ETF Cointucky Derby. The ETFs traded a total of nearly $10 billion over three days. Will have updated flows and assets later tonight or tomorrow morning. pic.twitter.com/OnpCshjYJP
— James Seyffart (@JSeyff) January 16, 2024
Seyffart added that these launches were considered very successful by most metrics, with the sole exception of Wisdomtree, which reported $3.25 million in assets on the third day.
By almost any measure, these are all very successful launches. The only caveat to that may be that Wisdomtree only has $3.25m in assets, but it’s only day 3 – this is a LONG race.
— James Seyffart (@JSeyff) January 16, 2024
This increased activity suggested growing interest from institutional investors, potentially increasing Bitcoin’s liquidity and market depth.
The success of these launches also strengthened Bitcoin’s legitimacy in traditional financial markets, indicating a positive direction for the future.
As the race unfolds, continued institutional participation could further solidify Bitcoin’s position as an attractive investment option for those unfamiliar with crypto.
Problems ahead?
However, recent developments may cause skepticism around the king coin. One of these was the movement of massive amounts of BTC through largely dormant accounts.
According to a tweet from Arkham Intelligence, large addresses believed to be linked moved $2 billion worth of BTC on January 16.
$2 BILLION in dormant Bitcoin moved across several linked addresses just before the US market opened today.
The BTC had moved once in 2019 and had previously been inactive since 2013. pic.twitter.com/xD4frjzQuP
— Arkham (@ArkhamIntel) January 16, 2024
Read Bitcoin’s [BTC] Price forecast 2024-25
This sudden whale move could cause uncertainty among holders as fears of a sell-off loom. However, until the time of writing, there was no significant impact on BTC.
At the time of writing, Bitcoin was trading at $42,715.13, with the price growing 0.4% over the past 24 hours.
Source: Santiment