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Spot Bitcoin ETFs Surpass $50 Billion in Volume

Fri 23 Feb 2024 ▪ 4 min of reading ▪ by Fenelon L.
Getting informed Event

Propelled by the recent surge in prices, trading on Bitcoin Spot ETFs has just reached an all-time high. The combined volume of the top 10 trackers now hovers around the 50 billion dollar mark.

A cup for Spot Bitcoin ETFs

A Meteoric Growth in Bitcoin ETF Volumes

Spot Bitcoin ETFs have just crossed an historical peak in terms of traded volumes. According to data provided by Bloomberg Intelligence and analyzed by James Seyffart, an ETF expert, the accumulated volume of the 10 leading trackers in the segment is now close to 50 billion dollars, at precisely 49.7 billion.

Undoubtedly, the Grayscale Trust ETF overwhelmingly dominates the discussions with 20 billion dollars in trades, accounting for more than 40% of the total. This is despite ongoing fund outflows. It is far ahead of the BlackRock tracker (13.5 billion) and that of Fidelity (9 billion). Together, these giants capture more than 80% of the transactions in the Spot Bitcoin ETF niche.

In the meantime, other players are still struggling to emerge in this highly competitive market, like little Valkyrie generating “only” 79 million dollars in trades. Far behind VanEck (95 million), Franklin Templeton (87.5 million), or WisdomTree (25 million). These are direct competitors that it must quickly catch up with.

A Favorable Market Trend

How can we explain such a public craze for these trackers? Beyond their undeniable advantages in terms of accessibility, they are mainly riding on the bullish wave of Bitcoin.

Indeed, the BTC price has been on an upward trend for several weeks. After having touched 52,000 dollars, the queen of cryptos is currently hovering around 51,400 dollars (+0.23% over 24h). A positive orientation that delights experts, who are predominantly optimistic in the short term.

Many analysts thus anticipate a continuation of the rally. According to Ali Martinez, a renowned crypto analyst, BTC could rally to 57,000 dollars soon under the effect of an influx of investors. An even more exciting scenario for Max Keiser who envisions a soar towards 500,000 dollars, in case of a collapse of the American stock markets.

Regardless, these cheery prospects are fanning the frenzy around Spot Bitcoin ETFs and mechanically boosting their already impressive trading volumes.

Innovations Underway to Attract Investors

In the face of this success, new players are preparing to launch to ride the wave. Thus, the fund manager WisdomTree plans to convert its futures-backed product into a real physical ETF accurately reflecting the BTC price.

For its part, Valkyrie is ramping up its efforts to close its current gap: the small-cap company has just expanded its bitcoin custodians to include security specialist BitGo. An initiative aimed at reassuring potential investors about the robustness of its infrastructure.

As the crypto market matures, Spot Bitcoin ETFs are becoming favored investment vehicles for exposure to the BTC price. The race for market share is likely just beginning…

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Fenelon L. avatar
Fenelon L.

Passionné par le Bitcoin, j'aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermement que Bitcoin est l'outil qui peut rendre cela possible.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.