In the dynamic landscape of cryptocurrency investment, BlackRock’s IBIT and other newly launched spot Bitcoin ETFs are making waves in volume and liquidity, according to insights from James Seyffart, a Research Analyst at Bloomberg.
Seyffart’s recent analysis, shared on X (formerly Twitter), highlights the impressive growth of BlackRock’s IBIT, signaling a potential challenge to the dominance of Grayscale’s GBTC. On January 26, BlackRock’s IBIT recorded a daily volume of $480.8 million, showcasing a substantial increase in liquidity compared to previous figures. Grayscale’s GBTC boasted a daily trading volume of $649 million on the same day.
BlackRock’s IBIT Sparks Spot Bitcoin ETF Surge
While acknowledging that the flows and total volume numbers for the spot Bitcoin ETFs are not yet fully available, Seyffart deems the performance of the smaller ETFs commendable. According to him, these emerging players are gradually closing the gap with Grayscale’s GBTC, a market leader.
Expanding upon Seyffart’s insights, it becomes evident that BlackRock’s IBIT is one of many contenders experiencing a surge in the spot Bitcoin ETF arena. Seyffart’s comprehensive data underscores substantial growth across various Bitcoin ETFs. Fidelity’s FBTC, for instance, garnered noteworthy attention with a robust daily volume of $333.9 million. Likewise, Ark and Bitwise made their mark, recording daily volumes of $100.4 million and $64.3 million, respectively.
Collectively, the total volume of all listed spot Bitcoin ETFs approximately eleven days before Seyffart’s analysis stood at $24.36 billion. Excluding GBTC, the remaining ETFs contributed around $11.74 billion. Seyffart’s research also underscores the 10-day flow for GBTC at approximately $744 million, with the remaining ETF products registering a significant $5.53 billion.
Assessing the recorded metrics and recent performance, Seyffart contends that the ETF sector is witnessing substantial growth. Notably, he emphasizes that this growth is not confined to a specific ETF but is spread across multiple products, signifying a diversified and expanding market in the cryptocurrency investment space.