- The collective volume generated in the first three days makes spot Bitcoin ETFs bigger than 99% of the crypto market.
- According to Bloomberg ETF analyst James Seyffart, the SEC will likely hold its decision regarding allowing options on spot BTC ETFs.
- ETF analyst Eric Balchunas highlighted that the collective volume of the 500 ETFs launched in 2023 was only $450 million.
Bitcoin has not had an opportunity to benefit from the bullishness that came with the spot BTC ETF approval. In the meantime, the ETFs themselves have managed to surpass some of the biggest crypto assets in terms of the total value traded in just three days.
Spot Bitcoin ETF is bigger than many altcoins
According to Bloomberg ETF analyst James Seyffart, spot Bitcoin exchange-traded funds (ETFs) have traded more than $9.6 billion in terms of volume. This amount is acheived in just three days where Grayscale has been leading the charge, having traded $5.1 billion in the same duration.
Update on the #Bitcoin ETF Cointucky Derby. The ETFs have traded almost $10 billion total over 3 days. Will have updated flows and assets later tonight or tomorrow morning. pic.twitter.com/OnpCshjYJP
— James Seyffart (@JSeyff) January 16, 2024See AlsoBest bitcoin ETFs of July 2024Spot bitcoin ETFs: How do they work?Bitcoin records largest single-day drop in two weeks, falls over 7% | Stock Market NewsBitMEX Crypto Prices, Trade Volume, Spot & Trading Pairs
This was put into perspective by another Bloomberg ETF analyst, Eric Balchunas, who noted that the nearly $10 billion volume in three days is bigger than the combined volume of the 500 ETFs launched in 2023. The total volume traded by these ETFs was around $450 million altogether, with the highest recorded volume from a single investment product being $45 million.
In regards to the difference, Balchunas stated,
"It is HARD to get volume. Harder than flows even and def harder than assets. Because volume has to form naturally in market place, can't really be faked. And it gives an ETF staying power.
In terms of the crypto market, the $9.6 billion volume, when put against the crypto assets, shows us that spot Bitcoin ETFs fall among the top 15 assets. In fact, when compared to all the existing cryptocurrencies, these ETFs sit within the top 0.13% of all the 9,024 crypto assets in existence.
This growth is expected to only expand over the coming days, which could result in these ETFs generating significantly more volume.
Bitcoin price needs a boost
As wild as it may sound, Bitcoin price needs a push from the investors since, at the time of writing, the cryptocurrency is stuck around the $43,000 mark. Following the 7.7% crash over the weekend, BTC fell through the uptrend line that had been acting as a support level.
The Relative Strength Index (RSI) also fell below the neutral line at 50.0 for the first time in three months, suggesting mild bearishness at the moment. Given that BTC managed to bounce off the 50-day Exponential Moving Average (EMA) coinciding at $42,069, there is a shot at recovery, provided the $44,000 barrier is breached.
BTC/USD 1-day chart
However, if the 50-day EMA is lost, Bitcoin price could see a drawdown to $40,000 and falling through it would invalidate the bullish thesis to result in a decline to $38,000.
Cryptos feed
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