Spot Bitcoin ETF Volume Surpasses $10 Billion

Since their introduction in the United States three days ago, spot Bitcoin exchange-traded funds (ETFs) have experienced trading volumes in the tens of millions.

According to Bloomberg Intelligence analyst James Seyffart, whose data was posted on X (formerly known as Twitter), by January 16, trading volumes for spot ETFs had surpassed $10 billion.

Since their launch on January 11, Bitcoin's latest ETFs have sparked debate. Despite high trading volumes, there has been minimal noticeable effect on Bitcoin's price growth.

Some remain cautious, but Bloomberg analyst Eric Balchunas points out the significance of these numbers.

He remarked on Seyffart’s post, “Let me put into context how insane $10b in volume is in first 3 days.”

He noted, “There were 500 ETFs launched in 2023. Today, they did a COMBINDED $450m in volume. The best one did $45m. And many have had months to get going. $IBIT alone is seeing more activity than the entire ’23 Freshman Class.”

Regarding net inflows and outflows, the trend continues with sales from the Grayscale Bitcoin Trust (GBTC), which has recently been converted into an ETF.

BitMEX research data indicates that the most significant net gains have been seen by BlackRock’s iShares Bitcoin Trust (IBIT), with an increase of $700 million over three days.

On the other hand, GBTC has experienced net outflows exceeding $1.1 billion, a shift attributed to investors moving between ETF products because of higher fees associated with GBTC.

James Van Straten, a research and data analyst at CryptoSlate, partially responded to these figures, saying, “GBTC total outflows are now at $1.18 billion vs. spot Bitcoin ETF inflows of $2B. It would be extremely encouraging if we continued this pace for the first month of trading.”

Samson Mow, CEO of Jan3, forecasted a return to ETF equilibrium after an initial period of adjustment post-launch.

On January 13, he shared with X subscribers, “Time is needed for everything to recalibrate.”

He added, “GBTC sell pressure won’t be a long drawn out process. Many just cannot sell because the tax hit is too big, and eventually Grayscale must capitulate on the fees. This is likely to be sooner rather than later.”

Nevertheless, most don't expect a significant BTC price increase beyond the established trading range since early December 2023.

Despite some confidence in the market's strength at the current $43,000 level, there are still uncertainties about Bitcoin's potential for a new downturn.

Regarding the weekly chart, a well-known social media trader JT commented, “Still see room to fall, regardless of a shorter-term pop.”

He suggested, “Once we get to the bottom of the long-standing range, we can reevaluate.”

Sources:

https://cointelegraph.com/news/bitcoin-spot-etf-volumes-10b-gbtc-sales

https://twitter.com/JSeyff/status/1747366266166206505

https://twitter.com/EricBalchunas/status/1747385703971860617

https://twitter.com/BitMEXResearch/status/1747549246134345824

https://twitter.com/jbutterfill/status/1747525739547607374

https://twitter.com/jvs_btc/status/1747540098244104582

https://twitter.com/Excellion/status/1746265550123372797

https://twitter.com/JTheretohelp1/status/1747395576189088188