Spot Bitcoin ETF Market: Leaders Emerge
Date: 2024-02-06 Author: Dima Zakharov Categories: BLOCKCHAIN
Introduction: The eagerly awaited approval of spot Bitcoin ETFs in the United States has been a game-changer for the cryptocurrency market. As the dust settles after nearly a month of trading, BeInCrypto takes a closer look at the recent developments and trends in this rapidly evolving space.
Spot Bitcoin ETF Trading Volume: The previous week marked a downturn in trading volume for spot Bitcoin ETFs in the U.S. While the first day of trading saw a staggering $4.54 billion in volume, the five-day trading period ended with just $1 billion. The worst day, February 1st, recorded a trading volume as low as $933 million.
Market Share Leaders: In the midst of this fluctuation, Grayscale's GBTC fund managed to strengthen its position. On January 30th, its market share stood at 31.33%, but by February 2nd, it had risen to 37.58%. BlackRock's IBIT, another major player, kept pace with GBTC. On February 1st, its market share reached an all-time high of 32.63%, only to drop to 25.18% by the week's end. Together, IBIT and GBTC dominate over 60% of the spot Bitcoin ETF market in the U.S.
Spot ETFs Gain Prominence: Notably, spot Bitcoin ETFs from BlackRock (IBIT) and Fidelity (FBTC) have climbed into the top 10 for total inflow of funds, attracting a remarkable $4.8 billion.
Rising Market Share: Towards the end of last week, the market share of spot instruments in the Bitcoin ETF market exhibited a positive trajectory, reaching 84.63% by Friday. It's worth recalling that the peak, at 86.75%, was achieved on January 19th.
Bitcoin Under ETF Control: According to Bloomberg analyst James Seyffart, spot Bitcoin ETFs now control over 640,000 Bitcoins, which amounts to roughly 3% of the Bitcoin supply. To put this into perspective, MicroStrategy, the largest public Bitcoin investor since 2020, holds 189,150 Bitcoins, equivalent to 0.9% of the Bitcoin supply.
Future Growth Predicted: Members of the crypto community anticipate further growth in the volume of Bitcoins held by spot Bitcoin ETF issuers. Such acquisitions may bolster the coin's price, especially as the market anticipates a supply shock with Bitcoin's upcoming halving event in April 2024, historically associated with price surges.
Spotlight on Ethereum: In addition to Bitcoin, there is growing hype surrounding the potential launch of spot Ethereum ETFs in the U.S. Notably, BlackRock is among the contenders seeking approval. Standard Chartered believes that the approval of Ethereum ETFs could push Ethereum's price past $4,000.
In Conclusion: As the cryptocurrency market continues to evolve, spot Bitcoin ETFs have taken center stage in the United States. The market's performance and the emerging leaders provide valuable insights for investors navigating this dynamic landscape.
