The eagerly awaited approval of spot Bitcoin exchange-traded funds (ETFs) in the U.S. has elicited mixed reactions within the cryptocurrency sector since its launch did not significantly elevate the crypto asset's price. Experts in the ETF sector regard the launch as a success, highlighting the notable trading volume of around $10 billion achieved in just over three days.
The newly approved spot Bitcoin ETFs marked a significant milestone by registering a trading volume exceeding $9.7 billion – precisely $9.771.8 billion – in just the initial three days following their launch.
This data, provided by Bloomberg Intelligence ETF analyst James Seyffart, underscores the success of these launches. Seyffart emphasized their effectiveness, stating that according to various metrics, these ETFs have had notably successful debuts.
Update on the #Bitcoin ETF Cointucky Derby. The ETFs have traded almost $10 billion total over 3 days. Will have updated flows and assets later tonight or tomorrow morning. pic.twitter.com/OnpCshjYJP
— James Seyffart (@JSeyff) January 16, 2024
In a broader context, the performance of the newly approved spot Bitcoin ETFs stands out when compared to other similar funds launched in the previous year.
Eric Balchunas, a Bloomberg Intelligence ETF analyst, provided a comparative analysis, noting that the aggregate trading volume of all 500 ETFs that commenced trading in 2023 amounted to $450 million as of January 17.
Significantly, the highest trading volume recorded among these was $45 million for a single fund.
"Let me put into context how insane $10b in volume is in the first 3 days. 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," Balchunas said in a tweet.
Note: half of those 500 new freshman class ETFs did less than a million in volume today.. It is HARD to get volume. Harder than flows even and def harder than assets. Because volume has to form naturally in market place, can't really be faked. And it gives an ETF staying power.
— Eric Balchunas (@EricBalchunas) January 16, 2024
"Half of those 500 new freshman class ETFs did less than a million in volume today. It is HARD to get volume. Harder than flows even and def harder than assets. Because volume has to form naturally in the market place, can't really be faked. And it gives an ETF staying power," the ETF analyst said in a follow-up tweet.
Furthermore, the newly launched spot Bitcoin ETFs demonstrated strong market performance, accruing over $782 million in net inflows.
These funds also achieved a noteworthy $2 billion in Assets under Management (AUM) and an impressive $4 billion in organic trading volume within a mere three-day period, as reported by ETF analyst Balchunas.
LATEST: Day Three in books the total rolling NET FLOWS is +782M as the Newborn Nine have more than offset the the $GBTC Gouge (which is now up to -$1.2b after half a bil yest, ouch). The Nine's $2b in aum and $4.5b in volume organic is fab for first 3 days, % prem solid too. pic.twitter.com/NDeubgi8mz
— Eric Balchunas (@EricBalchunas) January 17, 2024
"Day Three in books the total rolling NET FLOWS is +782M as the Newborn Nine have more than offset the $GBTC Gouge (which is now up to -$1.2b after half a bil yest, ouch). The Nine's $2b in aum and $4.5b in volume organic is fab for first 3 days, % prem solid too," the ETF analyst said in a tweet.
Analyzing the initial trading data, Grayscale Bitcoin Trust (GBTC) emerged as the frontrunner in the first three days, amassing a substantial $5.12 billion in trades.
This was closely followed by iShares Bitcoin Trust (IBIT), which garnered $1.99 billion. In the third position, Fidelity Wise Origin Bitcoin Fund (FBTC) marked its presence with an impressive $1.46 billion.
