Bitcoin News

Terrible Day For Spot Bitcoin ETFs And Bitcoin Despite $4.6 Billion In Total Trade

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Spot Bitcoin ETFs debuted strongly on Thursday after the U.S. Securities and Exchange Commission (SEC) approved listing and trading for all 11 spot Bitcoin ETF issuers including BlackRock and Grayscale on exchanges on January 10. However, experts believe spot Bitcoin ETFs actually recorded zero inflows when the 4.6 billion in total trading volume for newly listed ETFs is considered.

Bitcoin ETFs Record Low Inflows From $4.6 Billion

Ran Neuner, co-founder of Onchain Capital, and founder of Crypto Banter, in a post on X said “The Bitcoin ETF first day was terribly unsuccessful.” He believes most people are reporting over $4.5 billion in total trade, but they are not analyzing the data.

The 11 spot Bitcoin ETFs, including those from finance giants such as BlackRock and Fidelity Investments, had an impressive debut in terms of trading volume, with approximately $4.6 billion worth of shares traded on the first day. Bloomberg senior ETF analyst Eric Balchunas reported that a total of 700,000 individual trades were executed today involving the 11 spot ETFs.

Ran Neuner noted that the total trade was $4.6 billion and Grayscale Bitcoin Trust (GBTC) recorded $2.3 billion. The GBTC numbers were mostly sales and outflows due to higher fees of 1.5% and the old Bitcoin being locked up. Thus, “the real numbers were close approximately ZERO new inflows.”

Bloomberg ETF analyst James Seyffart also believes a ton of this trading volume was selling of GBTC and buying of other spot Bitcoin ETFs. However, he remains hopeful about the massive demand in spot Bitcoin ETFs throughout the year.

Also Read: Solana Ousts XRP from Hong Kong’s HKVAC Top 5 Crypto Index

Bitcoin Price Moves Back Near $45K

Bitcoin price jumped near the $49K level but returned below $46K in just 3 hours. BTC price is currently trading at $45,991. The 24-hour low and high are $45,620 and $48,969, respectively.

Furthermore, the trading volume has decreased by 14% in the last 24 hours, indicating a decline in interest among traders. Analysts expect Bitcoin price to hit $50K, but volatility and traders’ sentiment will lead to pullbacks in the coming week.

Also Read: Judge Denies Terra & Do Kwon’s Request For Reconsidering Court Ruling

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Varinder Singh

Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.

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