The 11 newly approved spot Bitcoin ETFs amassed over $4 billion in trading volume on its first day, with Grayscale, BlackRock and Fidelity Investments accounting for the majority of the volume.
The SEC approved 11 spot Bitcoin ETFs on January 11 after years of denials due to market manipulation concerns, allowing institutions to gain exposure to the flagship crypto for the first time.
The initial trading volume suggests an optimistic future for Bitcoin, which has remained stable despite many claiming the approval is a “selling news” event.
BlackRock leads new capital inflows
ETFs from industry leaders BlackRock and Fidelity Investment had a strong first day. The two ETFs recorded $942 million and $628 million in trading volume, respectively.
They also accounted for the vast majority of initial and daily trading volume, particularly in terms of new capital inflows. Inflows into the ten new ETFs – excluding GBTC – will be used directly to purchase more Bitcoin.
Grayscale’s Bitcoin Trust (GBTC), now converted to an ETF, leads the pack in trading volume with approximately $1.9 billion. However, it is unclear to what extent this volume represents new capital flows, given its status as a converted fund.
Eric Balchunas, senior ETF analyst at Bloomberg, speculated that the majority of Grayscale’s trading volume could represent sales activitywhich contrasts with the likely influx of new capital for the recently launched BlackRock and Fidelity funds.
The ARK 21Shares Bitcoin ETF saw $148 million in trading volume, while other new entrants like Franklin Templeton and Valkyrie saw less than $10 million each in the first few hours.
Spot BTC ETFs, which allow investors to speculate on the price of Bitcoin without directly owning the digital currency, are expected to attract large inflows of capital in the coming weeks.
Balchunas described the trading volumes as “unreal first-day numbers.” At the same time, analyst James Seyffart suggested that these volumes were largely driven by capital inflows, with Grayscale’s GBTC being a notable exception.
Coinbase’s over-the-counter (OTC) Bitcoin trading volume reached $7.7 billion on January 11, marking an all-time high. This increase aligns with a significant increase in cryptocurrency trading volumes, which reached $52 billion, a high not seen since March 2023.
Standard Chartered Bank recently predicted that these ETFs could bring between $50 billion and $100 billion to Bitcoin in 2024. The lender said these new flows, combined with the halving, could push BTC to $200,000 from by the end of 2025.
At the time of writing this article, Bitcoin is ranked #1 in terms of market capitalization and the price of BTC is up 1.3% in the last 24 hours. BTC has a market capitalization of $910.78 billion with a 24-hour trading volume of $57.73 billion. Learn more about BTC ›
At press time, the global cryptocurrency market is valued at $1.77 trillion with a 24 hour volume of $131.89 billion. Bitcoin dominance is currently at 51.33%. Learn even more >