Volume of Bitcoin Spot ETF Trading Halves on Day 3 Compared to First Two Days

On the third day of U.S. stock market trading, Bitcoin Spot ETFs recorded a trading volume of $1.8 billion, marking a decline from previous days.

Volume of Bitcoin Spot ETF Trading Halves on Day 3 Compared to First Two Days. Photo: CCN

By the close of trading on January 16, 2024 (U.S. time), the newly SEC-approved Bitcoin Spot ETFs launched on January 11 had accumulated a trading volume of $1.9 billion, bringing the total volume over the first three days to $9.6 billion.

Grayscale, BlackRock, and Fidelity ETFs continued to dominate trading volumes on January 16, with figures of $1 billion, $371 million, and $300 million, respectively.

However, it's noteworthy that trading volume on the third day halved compared to $4.6 billion and $3.1 billion on the first two days, continuing a downward trend.

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

Analysts, however, view this as just the beginning, noting that nearly $10 billion in trading volume in the first three days is a remarkable success, surpassing standard expectations in the ETF sector.

Preliminary data compiled by BitMEX Research indicates that Grayscale's GBTC saw significant outflows totaling $590 million on day 3 alone, with a cumulative outflow reaching $1.17 billion over the first three days. As reported by Coin68, U.S. investors appear inclined to withdraw funds from Grayscale's GBTC to realize profits after enduring losses, or migrate to other Bitcoin Spot ETFs offering lower management fees below Grayscale's market-high 1.5% per annum.

Bitcoin Spot ETFs - Day 3

Possible new share count number for GBTC on day 3 is out. It implies $590m outflow in day 3. This would be $1,169m GBTC outflow in the first three days

Still awaiting data from other providers pic.twitter.com/Y03iFPYkCC— BitMEX Research (@BitMEXResearch) January 16, 2024

Following investor demands for cash conversions, Grayscale transferred 4,000 BTC ($183 million) to Coinbase on January 12, resulting in a sharp Bitcoin price adjustment.

By the evening of January 16, the company continued to transfer an additional 9,000 BTC ($384 million) outwards, leading to speculation within the community about preparations for sell transactions to facilitate client withdrawals, according to Arkham.

9000 BTC ($385M) moved from Grayscale wallets in the past hour.https://t.co/K7P3NmGZFH pic.twitter.com/MUpy3kGkoq— Arkham (@ArkhamIntel) January 16, 2024

Bitcoin initially experienced significant impact from these developments, dropping from $42,950 to $42,000 in just 15 minutes. However, the world's largest cryptocurrency rebounded strongly in the following hours, briefly reaching $43,580 in the early hours of January 17.

15m chart of BTC/USDT pair on Binance at 08:10 AM on January 17, 2024.