In the United States, spot Bitcoin exchange-traded funds (ETFs) have witnessed eight-digit trading volumes within three days of their launch. Bloomberg Intelligence analyst James Seyffart revealed via social media that as of January 16, spot ETF volumes surpassed $10 billion.
Despite debates surrounding the new Bitcoin-focused ETF products since their January 11 launch, their high trading activity has had minimal impact on Bitcoin’s price increase. Bloomberg analyst Eric Balchunas defends the significance of these figures, indicating the market’s strong response.
The data shows substantial net inflows to the recently converted Grayscale Bitcoin Trust (GBTC) ETF product, with the iShares Bitcoin Trust by BlackRock (IBIT) experiencing a $700 million increase over three days. Conversely, GBTC faced over $1.1 billion in net outflows, suggesting investors are transitioning to other ETF products due to higher trading fees.
CryptoSlate research and data analyst James Van Straten commented on the transaction pace, noting that if it continues for the first month, it would be highly encouraging. Meanwhile, Jan3 CEO Samson Mow predicted a rebalancing in the ETF sector following the initial surge in volumes, anticipating that the pressure from GBTC sales will not be a long-term issue.
Mow also suggested that many investors are unable to sell due to significant tax burdens and that Grayscale will eventually have to concede on fees, likely sooner rather than later.