Bitcoin ETF reaches huge milestone, but uncertainty remains
The cryptocurrency industry’s eyes remain on the U.S. Bitcoin (BTC) spot exchange-traded fund (ETF). These funds appear to be having great success, which is positive for crypto sentiment.
This week, 11 Bitcoin ETFs finally reached a huge milestone. Since approval, the fund's shares have traded worth tens of billions of dollars.
Bitcoin stock exchange-traded funds appear to be popular
Since the Bitcoin exchange fund was approved, total trading volume has exceeded $50 billion, according to data from The Block. This is a milestone that underscores the fund's success.
Total transaction volume reached the $50 billion level in just six weeks.
However, not all trading volume is positive. Grayscale’s GBTC fund has been liquidating since it was approved. Part of the reason is that the fund was previously a closed-end fund and was more expensive than its competitors.
This caused many investors to sell shares of the fund. On January 11, GBTC’s market share still exceeded 50%. That has since shrunk to 28.6%.
BlackRock, the world's largest asset manager, has benefited the most. The fund's market share increased from 22% to 37%.
Still, GBTC is by far the largest. This may bring some uncertainty to the market, as GBTC will likely continue to dry up. The outflow has put considerable pressure on Bitcoin prices, as many Bitcoins are still available for sale.
The amount of Bitcoin each ETF currently manages. Source: Block Data.
Fallen Cryptocurrency Giants Are Dumping Bitcoin
It’s not just high costs that pose problems for GBTC. Sales by bankrupt cryptocurrency parties can also cause headaches.
Reports emerged last week that collapsed cryptocurrency lending platform Genesis may sell $1.6 billion worth of GBTC shares.
Bankrupt cryptocurrency exchange FTX also sold large amounts of GBTC shares to compensate creditors for losses.
The cryptocurrency industry’s eyes remain on the U.S. Bitcoin (BTC) spot exchange-traded fund (ETF). These funds appear to be having great success, which is positive for crypto sentiment.
This week, 11 Bitcoin ETFs finally reached a huge milestone. Since approval, the fund's shares have traded worth tens of billions of dollars.
Bitcoin stock exchange-traded funds appear to be popular
Since the Bitcoin exchange fund was approved, total trading volume has exceeded $50 billion, according to data from The Block. This is a milestone that underscores the fund's success.
Total transaction volume reached the $50 billion level in just six weeks.
However, not all trading volume is positive. Grayscale’s GBTC fund has been liquidating since it was approved. Part of the reason is that the fund was previously a closed-end fund and was more expensive than its competitors.
This caused many investors to sell shares of the fund. On January 11, GBTC’s market share still exceeded 50%. That has since shrunk to 28.6%.
BlackRock, the world's largest asset manager, has benefited the most. The fund's market share increased from 22% to 37%.
Still, GBTC is by far the largest. This may bring some uncertainty to the market, as GBTC will likely continue to dry up. The outflow has put considerable pressure on Bitcoin prices, as many Bitcoins are still available for sale.
The amount of Bitcoin each ETF currently manages. Source: Block Data.
Fallen Cryptocurrency Giants Are Dumping Bitcoin
It’s not just high costs that pose problems for GBTC. Sales by bankrupt cryptocurrency parties can also cause headaches.
Reports emerged last week that collapsed cryptocurrency lending platform Genesis may sell $1.6 billion worth of GBTC shares.
Bankrupt cryptocurrency exchange FTX also sold large amounts of GBTC shares to compensate creditors for losses.