Bitcoin ETFs have reached a major milestone, but uncertainty remains

The crypto industry’s eyes are still on US-based Bitcoin (BTC) spot exchange funds (ETFs). The funds appear to be a great success, which has a positive impact on sentiment towards the cryptocurrency.

The 11 Bitcoin ETFs finally reached a major milestone this week. Since approval, fund shares worth tens of billions of dollars have been traded.

Bitcoin exchange funds seem to be popular

According to data from The Block, the total trading volume since the approval of Bitcoin exchange funds has exceeded $50 billion. A milestone that underlines the success of the funds.

The total trading volume of $50 billion was reached in just six weeks.

However, not all trading volume is positive. Grayscale’s GBTC fund has been empty since its approval. This is partly because this fund, which was previously a closed-end fund, is more expensive than its competitors.

This leads to many investors selling their shares in this fund. As of January 11, GBTC still had a market share of more than 50%. Since then, this figure has shrunk to 28.6%.

The world’s largest asset manager BlackRock is particularly benefiting from this. This fund’s market share increased from 22% to 37%.

Nevertheless, GBTC remains by far the largest. This may cause some uncertainty in the market precisely because GBTC will likely continue to dry up. The outflow puts significant pressure on the Bitcoin price as there are still many Bitcoins that can be sold.

The amount of Bitcoin each ETF now manages. Source: The Block Data.

Fallen crypto giants are selling BTC

It’s not just the high costs that cause problems for GBTC. Sales of bankrupt crypto parties are also a headache.

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Last week, it was reported that fallen crypto lending platform Genesis could sell $1.6 billion worth of GBTC shares.

The insolvent crypto exchange FTX also sold large amounts of GBTC shares to compensate creditors for damages.

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