US Spot Bitcoin ETFs Surpass $750 Million in Trading Volume – BlackRock Dominates
The US financial market now has six spot Bitcoin ETFs that have been launched since October 17, with the market entry of BlackRock, Bitwise, VanEck, and other financial companies. Although the start did not lead to new records, a report from Bloomberg indicates a trading volume of $750 million – and BlackRock is already at the top.
Bloomberg analyst Eric Balchunas reveals these numbers and says the introduction of spot Bitcoin ETFs in the US is promising. He mentions a trading volume of approximately $2 billion for the other Bitcoin ETFs (futures) and highlights the success of BlackRock as the leader in this segment, even stating that they account for more than half of the cumulative trading volume of all spot Bitcoin ETFs so far.
Why are US spot Bitcoin ETFs different?
Spot Bitcoin ETFs make it possible for investors to buy real Bitcoin. The key difference between them and the previously existing Bitcoin Futures ETFs lies in avoiding price risks in futures. The US Securities and Exchange Commission (SEC) approved the Binance Bitcoin Spot ETF on October 13, leading to the launch of the ETFs now active.
On the first day, $50 million was traded, but interest increased rapidly afterward. According to Balchunas, on the second day of BlackRock’s Bitcoin spot ETF alone, the trading volume was $125 million, and on October 19, $215 million.
BlackRock’s dominance in the new market
BlackRock was already considered a favored candidate to lead due to its vast corporate resources and experience in handling ETFs. Balchunas suggests BlackRock’s spot Bitcoin ETF functions like a Nexus that continually attracts liquidity.
The scenario of an approved spot Bitcoin ETF had been expected by the crypto market for years, and the seamless introduction reassures investors. Although the total amount invested so far with $750 million cannot compare with larger portfolios, it is a signal for promising developments.
Further US-approved Bitcoin ETFs anticipated
Several financial companies are still waiting for SEC approval for their spot ETFs. The companies include WisdomTree, Invesco and Grayscale. With this added list, the directions suggest that the financial bloodstream of spot Bitcoin ETFs in the US will continue to grow significantly.
Current data and approximations by experts like Balchunas suggest this is just the beginning, and the completion of the process could soon result in a total exceeding $1 billion.
The successful start of spot Bitcoin ETFs in the US also triggers speculation that the crypto market will react positively in the coming months, highlighted by the upcoming halving event.
Leave a Reply