Bitcoin ETF Trading Volumes See Sharp Surge, GBTC Sees $27 Million Inflows

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As a researcher with extensive experience in the cryptocurrency market, I’m excited to see the renewed interest in Bitcoin Exchange-Traded Funds (ETFs). The recent surge in trading volumes is a clear indication of institutional investors seeking exposure to Bitcoin through regulated investment vehicles.

The buzz around Bitcoin ETFs has picked up steam once more, with numerous reports of conventional financial institutions looking to invest in these funds. Consequently, trading volumes for Bitcoin ETFs have surged, reaching a two-month peak.

Bitcoin ETF Volumes Pick Up Steam

According to data from on-chain provider Santiment, Bitcoin ETF trading volumes have experienced a notable increase, reaching their peak levels since March 24th.

Based on Santiment’s assessment, the combined trading volume for the seven biggest Bitcoin ETFs reached an impressive $5.65 billion in a single day, signaling a significant surge in investor appetite for cryptocurrency investment instruments.

Recent data indicates a shift away from past patterns in which major investors predominantly acquired Bitcoin using on-chain transactions. Additionally, the daily trading volume for Fidelity Wise Origin Bitcoin Fund reached a new peak.

The trading volume for Bitcoin ETFs is surging strongly, with the top 7 ETFs reaching a record high of $5.65 billion in a single day since March 24th. No longer is it just large investors amassing holdings on the blockchain. Monitor this trend closely using our complimentary dashboard to see if the momentum continues.

— Santiment (@santimentfeed) May 16, 2024

Based on SEC filings released recently, Millennium Management – a prominent global hedge fund – has revealed a significant Bitcoin ETF investment worth approximately $2 billion. The trend of larger financial institutions and hedge funds increasingly looking for ways to include Bitcoin ETFs in their portfolios continues to gain momentum.

BTC ETF Flows

On May 15th, Bitcoin spot ETFs experienced a total net investment of $303 million. Notably, Grayscale’s GBTC recorded a significant one-day inflow of approximately $27.0466 million, while BlackRock’s IBIT saw no new investments. Despite this, the difference in Bitcoin holdings between Grayscale’s GBTC and BlackRock’s IBIT has been gradually shrinking over time.

Grayscale is about to lose its top spot as the largest Bitcoin ETF.
The gap between Grayscale and BlackRock is closing, down to 15 000 BTC.
— ecoinometrics (@ecoinometrics) May 15, 2024

This Wednesday, Fidelity’s FBTC fund brought in approximately $131 million, making it the frontrunner in terms of investments this week. Simultaneously, Bitwise’s BITB fund recorded an inflow of around $86.26 million.

In line with the expanding Bitcoin ETF trading in the US market, the Hong Kong market is experiencing a notable surge as well. With ongoing advancements, Bitwise Investments highlights three significant tendencies concerning Bitcoin ETFs.

    As of last Thursday, 563 professional investment firms disclosed ownership of approximately $3.5 billion in BTC ETFs. With the May 15 filing deadline approaching, this number is expected to surpass 700 firms, potentially propelling the total assets under management (AUM) close to $5 billion.
    The magnitude of institutional ownership in these Bitcoin ETFs is unprecedented for a newly introduced ETF. Typically, new ETFs attract minimal attention from 13F filers during their initial months on the market.
    Despite comprising only 7-10% of total investments currently, the allocations made by professional investors may merely represent an initial investment, indicating the potential for further substantial contributions in the future.

Who’s Buying Bitcoin ETFs (According to 13F Filings)

Three takeaways from Bitwise CIO @Matt_Hougan’s weekly memo to investors.

Takeaway 1: Lots of Professional Firms Own Bitcoin ETFs

563 professional investment firms reported owning $3.5 billion worth of bitcoin ETFs as of…

— Bitwise (@BitwiseInvest) May 15, 2024

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2024-05-16 07:48