Since the listing of the Bitcoin spot ETF, the IBIT ETF, under BlackRock, has surpassed GBTC by Grayscale for the second time, while the selling pressure on GBTC has significantly decreased.
(Previous summary:
Standard Chartered Bank: Ethereum spot ETF to be approved by SEC on 23rd May, ETH surges to $4000
)
(Background information:
SEC plans to “forcefully reject” Ethereum spot ETF? Insider: Gensler still considers ETH a security
)
After the US Securities and Exchange Commission (SEC) approved 11 Bitcoin spot ETFs last month, the trading volume and selling pressure of GBTC by Grayscale have been continuously observed by the market. According to data released by Bloomberg analyst James Seyffart, the daily trading volume of Bitcoin spot ETFs was $1 billion yesterday (7th).
IBIT ETF under BlackRock has become the biggest winner with a trading volume of $340 million, while GBTC ranks second with a trading volume of $296 million. This is the second time that GBTC has been surpassed by IBIT since its launch, within the span of 19 trading days.
Bitcoin spot ETFs’ trading volume yesterday | Source: Bloomberg
On the other hand, as of the US stock market closing on February 7th, the total trading volume of all Bitcoin spot ETFs since their listing has reached an astonishing $32.7216 billion. Although the recent trading volume has significantly decreased compared to the initial listing, analyst James Seyffart also stated that “breaking $1 billion daily is not a big deal.”
Continuous decrease in Bitcoin spot ETFs’ trading volume | Source: THE BLOCK
Continuous decrease in GBTC selling pressure
Since the launch of Bitcoin spot ETFs, the Bitcoin price has experienced several days of continuous decline, even falling below $39,000 at one point. The continuous outflow of funds from GBTC is considered the main reason for the decline. GBTC not only puts pressure on the price of Bitcoin but also negatively affects investors’ short-term outlook on Bitcoin emotionally.
The latest official data shows that as of February 7th, the amount of Bitcoin held by GBTC has decreased. Specifically, GBTC currently holds a total of 470,637.4128 Bitcoins, a decrease of approximately 1,707.64 Bitcoins from the previous trading day. Although GBTC’s assets under management still amount to $20.2 billion, the selling pressure on GBTC is significantly decreasing if we observe the daily outflow.
Data shows that in the early days of GBTC’s launch, the daily outflow could reach $400-600 million. In the past week, it has only dropped to around $200-300 million. This also means that if this trend continues, the final balanced holdings of Bitcoin by GBTC may be higher than the market’s expectations.
Daily outflow of GBTC | Source: THE BLOCK
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