Bitcoin ETF Trading Volumes Surge Sharply, GBTC Sees $27 Million Inflows

Once again, the spotlight is on spot Bitcoin ETFs, as traditional financial institutions express interest in gaining exposure to these funds. Consequently, trading volumes for Bitcoin ETFs have surged to a two-month high.

Bitcoin ETF Volumes Pick Up Steam

On-chain data provider Santiment has reported a significant surge in trading volume for Bitcoin Exchange-Traded Funds (ETFs), marking the highest levels seen since March 24.

According to Santiment’s analysis, the seven largest Bitcoin ETFs collectively recorded a trading volume of $5.65 billion on a single day, indicating a notable uptick in investor interest in cryptocurrency investment vehicles.

The data suggests a departure from previous trends where large investors primarily accumulated Bitcoin through on-chain transactions. Moreover, the daily trading volume for the Fidelity Wise Origin Bitcoin Fund also touched a new all-time high.

📈 #BitcoinETF volume is picking up major steam, with the 7 largest #ETF's hitting $5.65B, the highest day since March 24th. Gone are the days of whales only accumulating #onchain. Keep a close eye on whether momentum stays high with our free dashboard: https://t.co/fyI2IS1U79 pic.twitter.com/77ZD0e7gpz

— Santiment (@santimentfeed) May 16, 2024

According to recent SEC filings, Millennium Management, a leading global hedge fund, has disclosed a substantial spot Bitcoin ETF portfolio valued at $2 billion. As said, more and more traditional players and global hedge funds are seeking exposure to Bitcoin ETFs.

BTC ETF Flows

On May 15, the collective net inflow into Bitcoin spot ETFs amounted to $303 million. Among the notable contributions, Grayscale’s GBTC saw a substantial single-day net inflow of $27.0466 million, while the surprising this was that BlackRock’s IBIT registered zero inflows. However, the gap between BlackRock’s Bitcoin holdings and that between Grayscale’s GBTC has been getting closer and closer with every passing day.

Grayscale is about to lose its top spot as the largest Bitcoin ETF.

The gap between Grayscale and BlackRock is closing, down to 15 000 BTC. pic.twitter.com/POQTFOxfiY

— ecoinometrics (@ecoinometrics) May 15, 2024

On Wednesday, Fidelity’s FBTC recorded an inflow of $131 million and has been leading the pack throughout this week. At the same time, Bitwise’s BITB observed an inflow of $86.2578 million.

Similar to the US market, the Bitcoin ETF trading activity in the Hong Kong market has also been growing very strongly. Amid the current developments, Bitwise Investments shares three major trends in regard to the Bitcoin ETFs.

1. As of last Thursday, 563 professional investment firms disclosed ownership of approximately $3.5 billion in BTC ETFs. With the May 15 filing deadline approaching, this number is expected to surpass 700 firms, potentially propelling the total assets under management (AUM) close to $5 billion.
2. The magnitude of institutional ownership in these Bitcoin ETFs is unprecedented for a newly introduced ETF. Typically, new ETFs attract minimal attention from 13F filers during their initial months on the market.
3. Despite comprising only 7-10% of total investments currently, the allocations made by professional investors may merely represent an initial investment, indicating the potential for further substantial contributions in the future.

Who’s Buying Bitcoin ETFs (According to 13F Filings)

Three takeaways from Bitwise CIO @Matt_Hougan's weekly memo to investors.

Takeaway 1: Lots of Professional Firms Own Bitcoin ETFs

563 professional investment firms reported owning $3.5 billion worth of bitcoin ETFs as of… pic.twitter.com/YCOKPpQqgE

— Bitwise (@BitwiseInvest) May 15, 2024