In a remarkable turn of events, the second day of trading for the recently launched Bitcoin exchange-traded funds (ETFs) witnessed an impressive volume surge, nearing the $900 million mark at press time. The momentum on Friday surpassed the opening day’s figures, signifying investors’ growing appetite for Bitcoin-linked financial products.
In a recent post on X, Eric Balchunas, a well-known ETF analyst, referred to the newly introduced funds as the “Nine Newborns” and highlighted the significant traction they have gained. The Grayscale Bitcoin Trust (GBTC), which saw a substantial increase in trading volume, hitting a remarkable $1.2 billion, was particularly interesting. This significantly improved from day one, when the fund had around $95 million in negative flows.
Bitcoin ETFs Dominate
The standout performers on the inaugural day were Bitwise and Fidelity Advantage Bitcoin ETFs, attracting $237.9 million and $227.0 million, respectively. Other ETFs, such as ARKB and IBIT, also reported robust inflows, while a cluster of others collectively drew in smaller amounts.
Building on the initial day’s success, the second day’s trading activity saw a notable uptick, with total volumes reaching nearly $900 million, excluding GBTC. BlackRock’s iShares Bitcoin Trust emerged as the day’s leader with a substantial $401.6 million in trading volume, closely followed by FBTC, boasting a robust showing of $291.0 million.
The post-launch flow report paints a bullish trend, indicating a responsive market that is quick to correct. ETF analyst Balchunas suggests that GBTC may accumulate more positive flow by the end of the day, further adding to the positive sentiment surrounding these investment vehicles.
Cathie Wood, CEO of Ark Invest, shared her insights on the consolidation prospects for Bitcoin ETF products, foreseeing only three to four out of the eleven ETFs likely to withstand market pressures and endure in the long term. To survive, these funds must attract substantial inflows and maintain a competitive edge, ensuring they generate sufficient revenue through Exchange-Traded Products (ETPs). The evolving landscape of Bitcoin ETFs continues to capture the attention of both investors and analysts alike as they navigate this dynamic and rapidly expanding market.