• Unprecedented Trading Volume: Bitcoin ETFs, in just three days of trading, amassed a total volume close to $10 billion, signalling an unprecedented level of interest in these investment products.
• Market Dynamics Shift: BlackRock’s iShares Bitcoin Trust is gaining momentum, challenging Grayscale’s traditional dominance. The changing dynamics suggest evolving investor preferences and highlight the competitive landscape within the cryptocurrency investment sector.

On January 16, spot Bitcoin ETFs showcased a remarkable performance, recording a staggering $1.8 billion in daily trading volume. This figure surpassed, by over three times, the combined trading volume of all 500 ETFs launched throughout 2023. The surge in Bitcoin ETFs’ popularity indicates the growing appetite for cryptocurrency investment.

Bitcoin ETFs Dominate Daily Trading

The collective volume across the ten recently approved spot Bitcoin ETFs on January 16 was particularly noteworthy. These ETFs, including offerings from Grayscale, BlackRock, and Fidelity, contributed significantly to the $1.8 billion daily volume. In comparison, the total trading volume for all 500 ETFs launched in the United States in 2023 amounted to a mere $450 million, highlighting the overwhelming interest in Bitcoin-related investment products.

Let me put into context how insane $10b in volume is in first 3 days. There were 500 ETFs launched in 2023. Today, they did a COMBINDED $450m in volume. The best one did $45m. And many have had months to get going. $IBIT alone is seeing more activity than the entire ’23 Freshman… https://t.co/wV1zQFtPW1

— Eric Balchunas (@EricBalchunas) January 16, 2024

BlackRock’s iShares Bitcoin Trust Leads Inflows

Among the Bitcoin ETFs, BlackRock’s iShares Bitcoin Trust emerged as a frontrunner in attracting net inflows. With over $497 million garnered in the last three days, BlackRock’s product demonstrated its appeal to investors. This surge in net inflows positions it as a strong contender to surpass Grayscale’s Bitcoin fund, indicating a potential shift in market dynamics.

Grayscale Faces Outflows Despite High Trading Volume

While Grayscale’s Bitcoin fund maintained a lead in total trading volume, exceeding $5.1 billion, it faced significant outflows. Notably, the Grayscale Bitcoin Trust (GBTC) witnessed total outflows exceeding $579 million since its commencement of trading on January 11. Analysts predict that BlackRock’s product may supersede GBTC as the “Liquidity King” due to its consistent appeal to investors.

LATEST: Day Three volume so far half a billion for the Newborn Nine which is healthy, about the same pattern dropoff rate as $BITO (which again was the most successful organic launch in ETF history). $IBIT keeping lead to be one most likely to overtake $GBTC as Liquidity King. pic.twitter.com/hoatfSmNpN

— Eric Balchunas (@EricBalchunas) January 16, 2024