Bitcoin futures ETF daily volumes hit $2 billion record in big first day for spot funds
Bitcoin futures ETFs, including the ProShares Bitcoin Strategy ETF (BITO), VanEck Bitcoin Strategy ETF (XBTF), and Valkyrie Bitcoin Strategy ETF (BTF), achieved a remarkable milestone as their daily trading volumes reached an all-time high of $2 billion. This achievement comes on the heels of the previous record of $1.4 billion set just a day prior, according to data from The Block.
Leading the pack is the ProShares Bitcoin Strategy ETF, which accounted for $1.97 billion, or 97%, of the $2 billion daily trading volume. Launched in October 2021, the ProShares Bitcoin Strategy ETF has been a dominant player in the bitcoin futures ETF market.
BITO smashed its all-time volume record in this historic day with $2 billion traded, stated Bloomberg ETF analyst Eric Balchunas. He also mentioned that the liquidity of BITO will likely serve as an advantage for market makers for the foreseeable future.
Additionally, in the first day of trading for 11 newly-launched spot bitcoin ETFs, BlackRock’s spot bitcoin ETF (IBIT) emerged as the leader, amassing over 700,000 trades and a total trading volume of more than $4.5 billion. Proving its popularity, the IBIT spot bitcoin ETF reached $1.05 billion in trading volume, surpassing BITO’s first-day futures bitcoin ETF volume in 2021. Fidelity’s FBTC ETF also performed well, generating nearly $685 million in trading volume.
Grayscale’s converted spot bitcoin ETF product (GBTC) saw even greater trading volume, reaching approximately $2.3 billion. However, it is important to note that Grayscale’s ETF is a conversion of its existing GBTC fund, making it unclear how much of the volume represents capital flowing out of the instrument.
While Grayscale’s volume is likely driven by selling, it is expected that a significant portion of the trading volume for newly-launched ETFs from BlackRock and Fidelity consists of fresh capital inflows. Other ETFs such as ARK 21Shares bitcoin ETF (ARKB) and Bitwise (BITB) also experienced significant trading volume, with $278 million and $122 million respectively.
In contrast, trading volumes for Franklin Templeton (EZBC), Invesco Galaxy (BTCO), and VanEck (HODL) remained below $100 million. Valkyrie (BRRR), WisdomTree (BTCW), and Hashdex’s (DEFI) trading volumes were still below $10 million.
These record-breaking trading volumes on the first day of trading for the newly-launched spot bitcoin ETFs mark a significant milestone in the ETF industry. It demonstrates the growing interest and demand for bitcoin-based investment products.
The Block, an independent media outlet providing news, research, and data, released this information. The article aims to deliver objective and timely information about the crypto industry, adhering to legal and ethical standards.
As the ETF market continues to evolve and expand, these impressive trading volumes highlight the increasing mainstream adoption of cryptocurrencies and their significance in the global financial landscape.
Disclaimer: This article is provided for informational purposes only and should not be taken as legal, tax, investment, financial, or other advice.
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