Trading activity for recently launched spot Bitcoin exchange-traded funds (ETFs) has experienced significant growth in the three days since their introduction. An impressive nearly $10 billion has been traded in spot Bitcoin ETFs during the first three days since their launch last week.
On January 17, Bloomberg ETF analyst James Seyffart shared updated figures, revealing a total volume of $9.7 billion.
Grayscale Takes the Lead
Grayscale commands the majority of this trading activity, with 52% of the total volume, amounting to $5.1 billion.
ETF Trading Dynamics
Despite the substantial capital inflows, investors have been adjusting their strategies. Some have opted to sell Grayscale’s Bitcoin Trust (GBTC) to transition to alternatives with more favorable fees. Others have shifted from futures-based funds to favor spot-based products.
According to data from CC15Capital posted on January 17, Grayscale’s Bitcoin Trust witnessed outflows of 11,188 BTC. The total BTC held by Grayscale amounted to 34,589, valued at an estimated $1.48 billion at current prices.
Seyffart commented on the dynamics, stating, “Today is likely to be a net outflow day for the Bitcoin ETFs.” He estimated that approximately $594 million exited GBTC, totaling $1.173 billion in outflows. While most other funds experienced inflows, it remains uncertain whether it’s sufficient to offset the nearly $600 million outflow from GBTC.
BitMEX Research shared figures indicating flows for each fund. On the third day of trading, Bitwise (BITB) recorded an inflow of $17.3 million.
Speculation on BlackRock’s Bitcoin Movements
Crypto podcaster “MartyParty” observed that BlackRock withdrew 11,500 BTC from Coinbase on January 14 and subsequently returned it. This sparked speculation about the potential introduction of artificial scarcity, with half a billion BTC leaving and returning.
Latest ETF Developments
On January 17, senior ETF analyst Eric Balchunas reported that ProShares had filed for multiple leveraged spot Bitcoin ETFs. The firm aims to introduce up to a dozen of these on the market in the coming months. The applications include options for shorting Bitcoin with leverage, such as the ProShares UltraShort Bitcoin ETF (-2x), ShortPlus Bitcoin ETF(-1.5x), and Short Bitcoin ETF (-1x). Additionally, they filed for ProShares Plus Bitcoin ETF (+1.5x) and ProShares Ultra Bitcoin ETF (+2x).
Meanwhile, Fidelity Digital Assets raised a question on January 17 about the likelihood or possibility of a competitor replacing Bitcoin. While acknowledging the technical possibility, it emphasized the improbability due to Bitcoin’s open-source software being replicable, but its community and network effects being irreplaceable.