Bitcoin ETFs Erupt With “Insane” Volumes 3X Greater Than All 500 ETFs Launched In 2023 Combined

Updated: 17 January 2024

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Spot Bitcoin ETFs (exchange-traded funds) generated $1.8 billion in volume on Jan. 16, three times more than the combined trading volume that same day for all 500 ETFs that were launched in the US in 2023.

During the first three days of trading, the new Bitcoin ETFs racked up volume of $10 billion, led by Blackrock, Grayscale and Fidelity.

“Let me put into context how insane $10b in volume is in first 3 days,” said Bloomberg ETF analyst Eric Balchunas in an X post. “There were 500 ETFs launched in 2023. Today, they did a COMBINDED $450m in volume. $IBIT alone is seeing more activity than the entire ’23 Freshman Class.”

BlackRock, Grayscale And Fidelity Continue Spot Bitcoin ETF Dominance

BlackRock, Grayscale and Fidelity accounted for a whopping $1.6 billion of the $1.8 billion volume on Jan 16. Among these ETFs, BlackRock’s iShares Bitcoin Trust was the clear leader in terms of attracting net inflows. Over the past three days, the fund raked in more than $497 million.

Grayscale’s Bitcoin fund maintains its lead when it comes to trading activity, as it registered more than $5.1 billion in volume. However, the fund has experienced considerable outflows as investors likely seek lower fees in new products.

Since it started trading on Jan. 11, the Grayscale Bitcoin Trust (GBTC) recorded more than $579 million in total outflows.

LATEST: Day Three volume so far half a billion for the Newborn Nine which is healthy, about the same pattern dropoff rate as $BITO (which again was the most successful organic launch in ETF history). $IBIT keeping lead to be one most likely to overtake $GBTC as Liquidity King. pic.twitter.com/hoatfSmNpN

— Eric Balchunas (@EricBalchunas) January 16, 2024

In a Jan. 16 update on X, Balchunas predicted that BlackRock’s ETF would continue to attract the most inflows. He added that this would subsequently enable it “to overtake GBTC as Liquidity King.”

BlackRock Appeals To Wealthier Older Generation

BlackRock’s early success in the spot Bitcoin ETF market could be due to its simplistic advertising approach in addressing wealthy boomer investors. Many analysts and investors praised the world’s largest asset manager for its “boring” advertisement and its success in appealing to a mature, wealthy audience.

Amazing ads from Blackrock on $IBIT, the Blackrock Bitcoin Spot ETF.

Definitely a new market of investors is reached through $IBIT

pic.twitter.com/HxUZqE65kv

— Alessandro Ottaviani (@AlexOttaBTC) January 14, 2024

In the almost two-minute long video ad, BlackRock’s US head of thematics and alternative ETFs, Jay Jacobs, outlined Bitcoin’s value proposition.

The executive also explained how BlackRock’s ETF gives investors exposure to BTC. Following the release of the advertisement, BlackRock’s spot Bitcoin ETF recorded more than $1 billion in volume during its first day of trading.