Almost a month has passed since the long-awaited approval of spot Bitcoin ETFs in the United States and the launch of trading in the instrument.. The editors of BeInCrypto decided to find out what metamorphoses have occurred in the market. To do this, we analyzed data on trading volume and market share of spot Bitcoin ETFs in the United States. We tell you which issuers have taken the lead and what trends members of the crypto community are paying attention to
Last week was the worst week in terms of trading volume for spot Bitcoin ETFs in the US.. If on the first day of trading the volume was $4.54 billion, then traders closed the last five-day working day with a result of $1 billion. The worst result was recorded on Thursday, February 1. On this day, trading volume in the spot Bitcoin ETF market fell to $933 million.
US Spot Bitcoin ETF Trading Volume. Source: The Block
At the end of last week, Grayscale's GBTC fund strengthened its position somewhat. If on January 30 its market share was 31.33%, then by February 2 it increased to 37.58%. IBIT from Wall Street asset manager BlackRock continues to catch up with GBTC. On February 1, the instrument’s share reached a record 32.63%, but by the end of the week it dropped to 25.18%. IBIT and GBTC hold over 60% of the US spot Bitcoin ETF market.
Share of spot Bitcoin ETFs in the US. Source: The Block
Nate Geraci, president of the investment consulting firm ETF Store, noted that spot Bitcoin ETFs from Blackrock (IBIT) and Fidelity (FBTC) entered the top 10 overall among all ETFs in terms of inflows ($4.8 billion).
Spot ETFs as a total of asset inflows into ETFs in January. Source: microblog of Nate Geraci
Also, by the end of last week, the share of spot instruments in the Bitcoin ETF market showed a positive movement. By the end of Friday the figure reached 84.63%. Let us remind you that the maximum – 86.75% – was recorded on January 19.
Comparison of market shares of spot and futures ETFs. Source: The Block
According to Bloomberg analyst James Seyffart, the volume of bitcoins under the control of issuers of spot ETFs on BTC exceeded 640 thousand. (about 3% of Bitcoin emission). For comparison, as of 2020, the largest Bitcoin investor among public companies, MicroStrategy, controls 189,150 coins.. The organization’s share is equal to 0.9% of the BTC issue.
BTC volume under the control of issuers of spot Bitcoin ETFs. Source: Bloomberg
Participants in the crypto community predict further growth in the volume of BTC under the control of issuers of spot Bitcoin ETFs. Purchases of cryptocurrency by issuers can support the growth of the coin’s exchange rate, as the market faces a supply shock ahead.
Let us remind you that the Bitcoin halving, which will halve the rate of influx of cryptocurrency into the market, will take place in April 2024. The event, as observations show, helps BTC update its absolute maximum value approximately once every four years. This effect is achieved by creating a deficit through a sharp decrease in the supply of cryptocurrency.
Also, representatives of the crypto community are expecting an increase in hype around the possible launch of spot Ethereum-ETFs in the USA. Let us remind you that Blackrock is also participating in the race to launch the tool.. Standard Chartered believes that once spot ETFs are approved, Ethereum will break through the $4,000 level.
Previously, the editors of BeInCrypto collected in one review useful information that will be useful to investors in spot Bitcoin ETFs.
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