Grayscale Bitcoin Trust (GBTC) battle over spot Bitcoin exchange-traded fund (ETF) shorting was suspended, and Bitcoin (BTC) fell from $42,580 to $43,422 on February 2nd. traded between.
BlackRock and ProShares ETF daily volume exceeds GBTC volume
Grayscale’s Convertible GBTC ETF has dominated the spot Bitcoin ETF market in terms of daily volume since the product began trading on January 11th.
This dominance began on February 1, when BlackRock’s iShares Bitcoin Trust (IBIT) and ProShares’ Bitcoin Strategy ETF (BITO) became the first of nine ETFs to exceed GBTC trading volume. It has come to an end.
According to data shared by Bloomberg Intelligence analyst James Seifert on February 1, IBIT leads with $301 million in trading volume, while additional data shows Indicated BITO ended the day with $298 million in trade. GBTC came in third place with $292 million in transactions.
Seifert said:
“BlackRock’s IBIT is the first ETF to trade more than Grayscale’s GBTC in a single day.”
There’s still some after-hours trading left, but it looks like BlackRock. $IBIT The first ETF to trade above grayscale $GBTC In just one day.
However, today’s total transaction amount was $924 million, something of a dud. For the first time since the group’s founding, trading volume fell below $1 billion. https://t.co/IeIF2COm4F pic.twitter.com/ZtADLBQP63
— James Seyffert (@JSeyff) February 1, 2024
“Today’s total trading volume was $924 million, which in some ways was a dud. It was the first day since our launch that the group’s dollar trading volume fell below $1 billion,” Seifert added.
This is the first time that total daily ETF trading has fallen below $1 billion, with cumulative trading volume now at $28.3 billion.
As of this writing on February 2nd, GBTC had returned to the top spot with a trading volume of $240.68 million.
GBTC selling continues to taper off
GBTC’s dominance in the Spot Bitcoin ETF was due to significant outflows from the trust since the first day of trading. This is primarily due to investors now being able to redeem their investments once the product is converted into a spot ETF, which was previously not possible.
Additionally, Grayscale’s high fees led to well over $5.8 billion in assets being lost since January 11, according to BitMEX Research.
Related: Spot Bitcoin ETF Adds 151,000 BTC Amid GBTC Dumping in January
According to BitMEX Research, high-fee GBTC products saw $5.8 billion worth of outflows during the period, compared to nine emerging ETFs that saw a total of $7.2 billion in inflows.
Bitcoin ETF Flow – Day 15
All data has been output. Day 15 net flow was +$38.5 million.Looks like a relatively quiet day pic.twitter.com/L478MuK9v1
— BitMEX Research (@BitMEXResearch) February 2, 2024
Regarding Bitcoin, 24,050 BTC was outflowed from GBTC, decreasing to 4,461 BTC on January 30th and 4,433 BTC on February 2nd.
According to JPMorgan analysts, GBTC outflows are primarily due to profit-taking and are “behind us,” which could ease pressure on BTC prices.
It is also important to note that when the GBTC sales peaked, the FTX cryptocurrency exchange sold all of its GBTC shares (22 million GBTC shares worth approximately $1 billion).
This article does not contain investment advice or recommendations. All investment and trading moves involve risk and readers should conduct their own research when making decisions.
