BlackRock’s IBIT and ProShares’ BITO have made history by becoming the first bitcoin exchange-traded funds (ETFs) to surpass the daily trading volume of Grayscale’s GBTC. On Thursday, IBIT recorded $306 million in trades, while BITO traded $298 million. In comparison, GBTC saw a relatively lower trading volume of $291 million, according to data from multiple sources.
This achievement is significant as Grayscale has been leading trading volumes among all bitcoin ETFs since their listing in early January. However, in recent weeks, most of these volumes have contributed to selling pressure as GBTC investors took profits and shifted to other providers, as some banks have previously stated.
Interestingly, Thursday also marked the first time that daily ETF volumes were below $1 billion, as noted by Bloomberg Intelligence analyst James Seyffart. It is important to mention that these figures do not include after-hours trading.
While Grayscale has experienced a decline in trading volumes, other providers have seen gradual inflows. As of Thursday, all ETFs combined hold a total of $28.6 billion worth of bitcoin. This indicates that despite the shifting dynamics in the market, there is still significant interest and investment in bitcoin ETFs.
It is worth noting that FTX, a bankrupt crypto exchange, has reportedly sold over $1 billion worth of GBTC. This further highlights the changing landscape of bitcoin investments and the impact it has on trading volumes.
The success of BlackRock’s IBIT and ProShares’ BITO in surpassing GBTC’s trading volume demonstrates the growing popularity and acceptance of bitcoin ETFs. As more institutional investors and traders enter the market, it is expected that the trading volumes of these ETFs will continue to rise.
Overall, this development signifies a significant milestone in the evolution of bitcoin ETFs and further solidifies their position as a mainstream investment option. As the market continues to mature, it will be interesting to see how these ETFs perform and whether they can maintain their dominance in trading volumes.