In just two months since its introduction, the U.S. Cash Bitcoin Exchange Traded Fund has captured nearly 90% of the daily volume market share of ETFs providing price exposure to Bitcoin.
The Bitcoin futures ETF, introduced in 2021, currently has a market share of just 10%.
This marks an all-time high for daily trading volume market share for spot Bitcoin ETFs, according to The Block’s data dashboard. These figures highlight that investors prefer direct exposure to Bitcoin through ETFs rather than Bitcoin futures contract-based products.
In fact, trading volume for spot Bitcoin ETFs has remained solid since its launch on January 11, totaling $113.5 billion to date. BlackRock’s IBIT, Grayscale’s GBTC and Fidelity’s FBTC funds were major contributors to this volume, with IBIT and FBTC also driving inflows. On the other hand, GBTC has recorded over $11 billion in outflows to date, according to BitMEX Research. data.
Earlier this year, JPMorgan analysts predicted that GBTC could see outflows of up to $13 billion in 2024, largely due to its significantly higher 1.5% fee compared to other spot Bitcoin ETFs. They also anticipated a surge in popularity for spot Bitcoin ETFs among retail investors, with institutional investors potentially switching from futures-based ETFs and GBTC to spot Bitcoin ETFs. The current spot Bitcoin ETF’s 90% daily volume market share appears to be in line with analysts’ forecasts.
Bitcoin prices have soared this year and are currently trading at around $72,150, according to The Block’s price page. Bitcoin has set a new record as the cryptocurrency’s price surge has driven more funds into spot Bitcoin ETFs, according to David Lawant, head of research at FalconX. “My impression is that while spot ETF inflows were driving prices until about a week ago, more recently prices have started to drive inflows at least to some extent,” Lawant said on Friday.
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