Spot Bitcoin exchange-traded funds (ETFs) has surpassed an impressive $10 billion in trading volume within just three days of their launch. Despite recent challenges in Bitcoin (BTC) price performance, analysts are optimistic about the future trajectory of these ETFs.
Bloomberg Intelligence analyst James Seyffart shared data on X (formerly Twitter), revealing that as of January 16, spot ETF volumes had soared past the $10 billion mark, defying expectations and setting a new standard for ETF trading activity, Cointelegraph said in a report.
Bitcoin’s newest ETFs, which debuted on January 11, have stirred controversy due to their frenetic trading activity that, so far, has shown little tangible impact on BTC price growth. However, analysts, including Eric Balchunas from Bloomberg, argue that the sheer volume of trading speaks for itself.
Balchunas commented on Seyffart’s post, providing context for the remarkable $10 billion volume, stating, “There were 500 ETFs launched in 2023. Today, they did a COMBINED $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.”
In terms of net inflows and outflows, the data highlights a shift from the Grayscale Bitcoin Trust (GBTC), newly converted to an ETF, toward BlackRock’s iShares Bitcoin Trust (IBIT), which has witnessed a substantial net gain of $700 million over the past three days. On the other hand, GBTC has experienced net outflows exceeding $1.1 billion, attributed to investors moving to ETF products with lower fees.
James Van Straten, research and data analyst at CryptoSlate, finds the numbers encouraging, stating, “GBTC total outflows are now at $1.18 billion vs. spot Bitcoin ETF inflows of $2 billion. It would be extremely encouraging if we continued this pace for the first month of trading.”
Despite the optimism surrounding ETFs, Jan3 CEO Samson Mow predicts a period of recalibration post-launch, especially regarding GBTC sell pressure. Mow stated, “Time is needed for everything to recalibrate. 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.”
However, in the midst of these developments, analysts are cautious about anticipating a surge in BTC prices beyond the established trading range that has been in place since December 2023. While some maintain confidence in the market strength at $43,000, doubts linger about Bitcoin’s ability to avoid a fresh capitulation.
