The latest data shows that the first Bitcoin (BTC) exchange-traded fund (ETF) recorded the highest weekly trading volume since its inception.
According to senior Bloomberg ETF analyst Eric Balchunas, BITO – the BTC futures ETF issued by ProShares – has included $1.7 billion in trading volume, while the Grayscale Bitcoin Trust (GBTC) saw $800 million.
Balchunas says the numbers suggest there is strong demand for Bitcoin ETFs.
“Notable: BITO traded $1.7 billion last week, the second biggest week since the wild WEEK ONE. GBTC did $800 million. That’s $2.5 billion (top 1% among ETFs) in two less desirable methods (vs spot) for exposure = while we think about spot ETFs [are] It’s unlikely we’ll set any records on DAY ONE, but there’s clearly an audience.”
When asked why he believes BlackRock’s spot market Bitcoin ETF won’t set a record if approved, Balchunas responded say that this is because multiple ETFs are likely to be launched at the same time, spreading volume between them.
“It is no longer 2021, no mania… and unlike what BITO had [the] market for itself, several will be launched at once this time, so the volume will be spread out. but we’ll see!”
Balchunas continues remark that high volume BTC ETFs can help attract large investors, such as hedge funds and large financial institutions.
“Assets [are] huge, but so is volume IMO (in my opinion), it shows the ‘activity’ around an ETF, and you need high volume to [a] shot to attract bigger fish like HFs (hedge funds) and institutions.”
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Generated image: Midjourney