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Bitcoin spot ETF trading volume exceeded $10 billion within two days of its listing. Is it a success or a bubble?

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Bitcoin spot ETF trading volume exceeded $10 billion within two days of its listing. Is it a success or a bubble?

The much-anticipated Bitcoin spot ETF has finally been successfully launched! Despite mixed attitudes from U.S. brokerages, Merrill Lynch and Vanguard even refuse to offer this trading service. According to Bloomberg's statistics, the trading volume on the first day of the Bitcoin spot ETF listing reached a staggering $46 billion, soaring to $78 billion on the second day. Meanwhile, the price of Bitcoin plummeted significantly. Is this ETF issuance considered a success?

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The Bitcoin spot ETF officially launched, BTC plunged, ETH takes over the performance

Second Day Trading Volume Reaches $7.8 Billion, First Day Net Inflow $660 Million

According to the latest data provided by Bloomberg ETF analyst James Seyffart, the total trading volume of the Bitcoin spot ETF on the second day was $7.82 billion. Among them, Grayscale's GBTC accounted for $4.166 billion, followed by BlackRock's IBIT at $1.618 billion, and then Fidelity's FBTC at $1.155 billion.

As the flow-in and flow-out of funds are statistics from the previous day, up to the first day, Grayscale GBTC had an outflow of $95.07 million, while other funds had net inflows. The champion of the first day was Bitwise BITB with $238 million, followed by Fidelity FBTC with $227 million, and then BlackRock IBIT with $112 million.

In addition, Seyffart revealed that the outflow of GBTC on the second day was $484 million, totaling $579 million over two days, which does not seem to be as expected: investors are selling GBTC heavily and moving to other fund issuers.

Is the Bitcoin Spot ETF a Success?

Measured by First Day Trading Volume

The lowest trading volume is $BTCW, excluding $DEFI, as it is a futures-to-spot ETF conversion, with a trading volume of $6.6 million. Comparing with the first-day trading volume of new ETFs, its volume exceeds 95% of the 500 new products launched last year.

Compared to SPY and QQQ

Below is a comparison chart of the Bitcoin spot ETF with the largest trading volumes of SPY and QQQ last year. In terms of trading frequency, trading shares, and even nominal trading volume, which refers to the actual trading amount, the Bitcoin spot ETF has performed very well.

Note: SPY SPDR S&P 500 ETF is the largest and oldest ETF globally, tracking the S&P 500. QQQ, on the other hand, is an ETF launched by Invesco that tracks the Nasdaq 100 index and is also the most popular ETF for investing in technology stocks.

Bloomberg ETF analyst Eric Balchunas believes:

From all indicators, whether it's trading volume, trading shares, traffic, media coverage, it's a huge success and has historical significance. Despite limited availability, take it easy and consider it as a multi-year process.