“First Bitcoin ETF breaks records with $1.5B in trades, as GBTC ‘discount’ mirrors the soaring $69K BTC price.”
Bitcoin institutional investment vehicles, such as Bitcoin exchange-traded funds (ETFs), are experiencing a surge in volume as anticipation of regulatory changes in the United States grows. Data from Bloomberg and other sources indicate that ETFs and other investment options are seeing record weekly inflows.
One notable ETF, the ProShares Bitcoin Strategy ETF (BITO), traded $1.7 billion last week, marking its second-largest week since its initial debut. The Grayscale Bitcoin Trust (GBTC) also saw significant volume, reaching $800 million. These numbers highlight the demand for alternative methods of exposure to Bitcoin, even as spot ETFs are unlikely to set records on their first day.
Analysts and researchers have taken note of the increased trading activity. William Clemente, co-founder of crypto research firm Reflexivity, described ETF trading as being “back in full steam.”
The resurgence of institutional investment options like GBTC is significant. GBTC has made a remarkable comeback in recent months, even before Bitcoin’s price gained 15% last week. Legal victories in the journey towards converting GBTC into a spot ETF have contributed to its success. The product now trades with an implied share price only 13.1% below the Bitcoin spot price, the lowest since November 2021.
Despite this positive trend, investment management firm ARK Invest has reduced its GBTC holdings in line with its share price gains. However, ARK plans to launch a Bitcoin spot ETF in the future.
It is worth noting that this article does not provide investment advice or recommendations. Readers should conduct their own research and exercise caution when making investment decisions.