The recent approval of spot Bitcoin ETFs by the US Securities and Exchange Commission (SEC) marks a significant milestone in the history of US trading. This development has sparked tremendous interest, as market data reveals a surge in institutional demand for Bitcoin. Despite a 2% dip in BTC’s price over the past week, the spot Bitcoin ETFs have experienced a remarkable start, with over $800 million in net inflows and $3.6 billion in trading volume within the first two days of trading.
ETF analyst Eric Balchunas, from Bloomberg, highlights the impressive performance of spot Bitcoin ETFs during their debut trading week. Out of the 11 approved ETFs, nine have attracted a total inflow exceeding $1.4 billion. BlackRock’s IBIT leads the pack with an estimated asset inflow of $497.7 million, closely followed by Fidelity’s FBTC with $422.3 million in investments. Additionally, Bitwise and ARK/21 Shares’ BTC spot ETFs have gained significant traction, attracting $237.9 million and $105.2 million, respectively. However, Grayscale’s GBTC has experienced a staggering $579 million in outflows during the first two days of trading.
The recent conversion of GBTC from a closed-end fund to a spot ETF has triggered a notable trend in investors cashing in heavily on the asset. Anthony Scaramucci, founder of SkyBridge Capital, suggests that this behavior may be one of the factors contributing to Bitcoin’s price dip in the past week.
Net Inflows and Future Potential
Despite the outflows from GBTC, the overall net inflow of the spot Bitcoin ETF market during its debut trading week stands at an impressive $818.9 million. As selling volume is expected to decline in the coming weeks, these figures are likely to improve further. Investors eagerly await the launch of Hashdex’s spot ETF called DEFI, which is currently undergoing fund conversion from the company’s Bitcoin futures ETF.
At the time of writing, Bitcoin is trading at $42,980, reflecting a 0.73% loss in the last 24 hours. The daily trading volume has plummeted by 62.33%, amounting to $16.9 billion. Nevertheless, Bitcoin remains the largest cryptocurrency globally, with a market cap of $842.23 billion.
The approval of spot Bitcoin ETFs by the SEC has sparked significant market interest and showcased the strong institutional demand for Bitcoin. The remarkable performance of these ETFs during their debut trading week, coupled with massive net inflows, suggests potential gains for the crypto market as a whole. While GBTC experienced outflows due to its recent conversion, the overall sentiment remains positive. As the market stabilizes and selling volume decreases, the figures are likely to improve. All eyes are now on the upcoming launch of DEFI, Hashdex’s spot ETF, which is expected to further fuel market growth. However, investors should remain cautious and conduct their own research before making any investment decisions, as investing always carries inherent risks.
Please note that the contents of this article are for educational purposes only and do not represent the opinions of NewsBTC. It is essential to conduct thorough research and exercise caution when making investment decisions.
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