Bitcoin ETFs surpass triple the combined daily volume of 500 ETFs launched in 2023

On Jan. 16, the total volume generated by 10 spot Bitcoin ETFs surpassed the cumulative volume of all 500 ETFs launched in 2023, exceeding it by more than three times.

As per data from Yahoo Finance, the 10 newly approved spot Bitcoin ETFs collectively amassed a trading volume of just above $1.8 billion on Jan. 16, with Grayscale, BlackRock, and Fidelity’s offerings leading the way contributing $1.6 billion to the overall total.

This volume significantly surpassed the combined $450 million trading volume of all 500 ETFs launched in the United States during 2023, as reported by Bloomberg ETF analyst Eric Balchunas.

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

Despite a notable decline in trading volume since the initial surge – with the third day closing at under $3.1 billion compared to $4.6 billion on the first day – the overall performance remains impressive. In just three days, the total volume for these spot Bitcoin ETF products neared $10 billion, a figure confirmed by Bloomberg’s ETF analyst James Seyffar.

A standout in this scenario is BlackRock’s iShares Bitcoin Trust, which drew over $497 million in net inflows in the past three days. It currently leads in attracting new investments and is poised to potentially surpass Grayscale’s volume, which has been dominant in the crypto-based ETF market.

Grayscale’s ETF, a conversion of its flagship GBTC fund, has seen considerable outflows, shedding over $579 million since its market debut last week. Despite this, the fund maintains approximately $27 billion in assets under management.

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

Balchunas highlighted the importance of liquidity as a decisive factor for investors choosing among the new spot bitcoin ETFs. This includes considerations such as tighter bid-ask spreads and the ability to execute large trades with minimal impact on price.

Competitors such as Ark Invest and 21Shares, along with Bitwise, also marked their presence in the market, recording trading volumes of approximately $124 million and $52 million, respectively, on Jan. 16. However, offerings from Invesco, VanEck, Franklin Templeton, Valkyrie, and WisdomTree observed more modest volumes of $10 million or less.

Despite the varying performance among the different funds, the overall trading activity for these new ETFs is seen as robust, with a cumulative volume exceeding $9.5 billion over three days. Balchunas compared this trend to the BITO’s launch, which holds the record for the most successful organic launch in ETF history.