Bitcoin ETFs Clock Billion-Dollar Daily Trading Volume, Approach MicroStrategy’s Holdings
Summary:
Bitcoin spot exchange-traded funds (ETFs) witnessed a trading volume of over a billion dollars on February 7, led by BlackRock's IBIT Bitcoin ETF. Despite Grayscale Bitcoin Trust (GBTC) observing outflows, other spot Bitcoin ETFs noted persistent inflows, pushing the total Bitcoin holdings of recently launched ETFs close to the reserves of MicroStrategy, the largest corporate Bitcoin holder. Reports also suggest Fidelity's move to incorporate spot Bitcoin into their All-in-One Conservative ETF, underscoring the growing significance of Bitcoin ETFs.
Bitcoin spot exchange-traded funds (ETFs) observed a robust trading day on February 7 with an overall daily trading volume surpassing a billion dollars. BlackRock's IBIT Bitcoin ETF emerged as the leader as it recorded a trading volume of $341.2 million, outdoing Grayscale Bitcoin Trust's $296.5 million worth of volume, as reported by Bloomberg Intelligence analyst, James Seyffart. Behind them, came Fidelity’s FBTC fund registering $200 million in volume, and the total volume for the seven remaining funds amounted to $188 million. Seyffart suggested that while a billion-dollar mark is encouraging, it's a mere increment from the previous days and is considerably lesser than the initial weeks of trading.
Spot Bitcoin ETFs continued to maintain steady inflows for the ninth consecutive day, despite Grayscale Bitcoin Trust (GBTC) losing funds. Preliminary data from Farside indicates that on February 7, GBTC experienced an exodus of $81 million, whereas the other nine spot Bitcoin ETFs received $226 million inflows. These included BlackRock with an influx of $56 million, Fidelity's fund increased by $130 million, and Bitwise's inflow reached $21 million. Fred Krueger, an investor, and author noted on February 8 that the combined Bitcoin reserves of the newly initiated nine ETFs were close to surpassing MicroStrategy's reserve, the foremost corporate Bitcoin holder. As of February 7, the holdings of these ETFs were nearly 187,000 BTC, in contrast with MicroStrategy's 190,000 coins, even after the addition of another 850 BTC in January, raising its total holdings to over $8 billion.
According to reports, Fidelity is incorporating spot Bitcoin into their All-in-One Conservative ETF. ETF analyst Eric Balchunas remarked this inclusion could signal a positive shift. This comes as Bitcoin ETFs become increasingly significant in the investment landscape.
Published At
2/8/2024 8:27:27 AM
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