- Spot Bitcoin ETFs amassed $4.6 billion in trading volume on its first day of trading.
- 700,000 spot Bitcoin ETF transactions were recorded, which is twice the number of trades of Invesco (QQQ ETF).
- The significant number of trades in spot Bitcoin ETFs on the first day of trading indicates a robust retail presence.
In a historic first, U.S. exchanges witnessed a trading frenzy as the first-ever spot Bitcoin ETFs began trading. Over $4.6 billion in trading volume, representing over 700,000 individual transactions, swept across the market, marking a watershed moment for both the crypto and traditional financial worlds.
Among the 11 ETF issuers, Grayscale’s dominance was undeniable. Its converted GBTC fund single-handedly accounted for over $2.3 billion in trade volume. It’s worth noting that the conversion of GBTC into an ETF was a pivotal moment in the approval process of the first spot Bitcoin ETF in the US, following a court ruling that questioned the SEC’s previous rejection.
Aside from a remarkable trading volume, the 700,000 transactions of spot Bitcoin ETFs dwarfed even established giants like Invesco (QQQ ETF), which has only half that number of trades. Despite QQQ having a more substantial trading volume due to institutional involvement, the significant number of trades in spot Bitcoin ETFs on the first day of trading indicates a robust retail presence.
ETF analyst Eric Balchunas expressed his surprise, stating, “So a lot more grassroots action (vs big seed buys) than I expected, which is good.” The observation hints at a shift towards a more active retail investor presence in the ETF space. In addition, the overwhelming response from investors underscores the growing demand for direct exposure to Bitcoin through traditional financial instruments.
Notably, the first 30 minutes of trading saw a flurry of activity, amassing over $1 billion in trade volume. Moreover, the fervor surrounding these ETFs contributed to a substantial surge in the price of Bitcoin, briefly breaking past the $49,000 mark for the first time since 2022. While the rally subsided somewhat, Bitcoin (BTC) maintained a healthy position above $46,000 at the time of writing.
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