BlackRock and ProShares Bitcoin ETFs surpassed GBTC’s daily trading volume
Bitcoin (BTC) traded between $42,580 and $43,422 on February 2, as the Greyscale Bitcoin Trust's (GBTC) grapplehold over spot Bitcoin exchange-traded funds (ETF) exited.
BlackRock and ProShares ETF daily volume is greater than GBTC volume
Greyscale's convertible GBTC ETF has dominated the Bitcoin ETF market in daily volumes since its products began trading on January 11.
This dominance ended in On February 1, BlackRock's iShares Bitcoin Trust (IBIT) and ProShares' Bitcoin Strategy ETF (BITO) became the first of nine ETFs to surpass GBTC in trading volume.
On February 1, data shared by Bloomberg Intelligence analyst James Seifert led IBIT with a volume of $301 million, while additional data showed that BITO ended the day with a turnover of $298 million. GBTC ranked third with $292 million in transactions.
Seifert said:
“BlackRock's IBIT is the first ETF to trade more than Greyscale's GBTC in a single day.”
There's still some after-hours trading left, but BlackRock's $IBIT appears to be the first ETF to trade more than Greyscale's $GBTC in a single day.
Today's total was a gummy $924 million — the group's first day under $1 billion since inception. pic.twitter.com/ZtADLBQP63
— James Seyff (@JSeyff) February 1, 2024
“Total sales today were kind of a dud at $924 million — the first day under $1 billion for the group since inception,” Seifert added.
This is the first time that total daily ETF trading has been below $1 billion, and the total trading volume now stands at $28.30 billion.
In the year
The GBTC selloff continues.
GBTC's dominance of the space is due to the massive outflow of Bitcoin ETFs from the trust since its first day of trading. This largely depends on investors' ability to recoup their investment once the product is converted to a spot ETF, something they were unable to do.
In addition, Greyscale's high fees have seen it drain assets worth more than $5.8 billion since January 11, according to BitMEX Research.
Related: Spot Bitcoin ETFs add 151K BTC amid GBTC dump in January
The high-fee GBTC product currently has more than $5.8 billion worth of assets invested, compared to $7.2 billion for the nine fledgling ETFs, according to BitMEX Research.
Bitcoin ETF Flow – Day 15
All data is extracted. Net inflow +$38.5m for Day 15. Looks like a relatively quiet day pic.twitter.com/L478MuK9v1
— BitMEX Research (@BitMEXResearch) February 2, 2024
But this dominance has started to wane in the last few days. Previously, GBTC was sending an average of $700 million in BTC to the Coinbase crypto exchange, and the BitMEX research data above shows that this is less than $300 million in total as of January 26th.
In terms of Bitcoin, 24,050 BTC came out of GBTC, down to 4,461 BTC on January 30th and 4,433 on February 2nd.
According to JPMorgan analysts, GBTC's exit is primarily driven by profit-taking and is “behind us”, which could take some of the pressure off BTC's price.
It should be noted that during the peak of GBTC selling, the FTX crypto exchange sold its entire GBTC stock – 22 million GBTC shares – for approximately $1 billion.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
