- Bitcoin ETF’s total trading volume is now as high as $19 billion
- Amid massive outflows, GBTC was still leading
Bitcoin Exchange-Traded Funds (ETFs) have experienced remarkable growth, reaching a staggering $18.779 billion in volume within the first seven trading days. Bloomberg analyst James Seyffart highlighted in X (formerly Twitter) that more than $2 billion was traded on January 22 alone.
Volume on the #Bitcoin ETFs remain very strong. Today more than 2 billion dollars again. $GBTC still just over half.
Total volume in the first seven trading days is just under $19 billion. pic.twitter.com/AGaJMsnC9S
— James Seyffart (@JSeyff) January 22, 2024
GBTC outflow
While the newly launched funds from companies such as Black rockBitwise and Fidelity have experienced inflows, billions of dollars of Bitcoin (BTC) have been withdrawn from Grayscale Bitcoin Trust (GBTC). This significant shift in investor preference is likely due to lower costs and greater liquidity offered by these new products.
Notably, GBTC saw its largest outflow to date on January 22, at more than $640 million. This marks a continued and escalating trend in outflows, totaling $3.45 billion date.
Seyfart tweeted:
“Blow day for #Bitcoin ETFs in general in the Cointucky Derby. $GBTC saw over $640 million outflows today. Outflows are not slowing, they are increasing. This is the largest outflow yet for GBTC.”
Moreover, The bankruptcy of FTX estate had a significant impact on the market by liquidating all its holdings of 22 million GBTC shares. This divestiture, valued at approximately $1 billion, is a significant contributor to the recent outflows from GBTC.
However, despite significant outflows from GBTC, it impressively retained more than half of the total trading volume.
A look at BTC inflows
In addition, recent data from Look at chain marked significant activity among the major Bitcoin ETFs. The iShares Bitcoin Trust added 4,808 BTC (worth approximately $194.4 million) from Coinbase Prime, bringing its total holdings to date to 33,431 BTC (worth approximately $1.33 billion).
iShares Bitcoin Trust (#Blackrock) received 4,808 $BTC($194.4 million) from #CoinbasePrime 9 hours ago and currently 33,431 in possession $BTC($1.33 billion).https://t.co/ey1nrZJiiP pic.twitter.com/1zBuRhENrj
— Lookonchain (@lookonchain) January 23, 2024
Meanwhile, the Fidelity Bitcoin ETF (FBTC) received an inflow of 5,312 BTC (worth approximately $216.3 million), reaching a total of 29,907 BTC (approximately $1.22 billion).
Finally, Bitwise Bitcoin ETF (BITB) acquired 1,352 BTC (worth $55.71 million) from Flow Traders, with a current holding of 10,152 BTC (approximately $412.71 million).
An increase in numbers
The remarkable ETF journey began on January 11, 2024, when the US approved trading in Bitcoin ETFs. On the first day of trading, the combined volume of all Bitcoin ETFs exceeded $4.6 billion. GBTC reported volume of approximately $2.3 billion after converting to an ETF. Not far behind were IBIT with $1 billion and FBTC with $712 million in volumes.