First week frenzy: Bitcoin ETFs shatter records with trading milestone

  • Total Bitcoin ETF trading volume is now as high as $19 billion
  • Amid massive outflows, GBTC still led the charge

Bitcoin exchange-traded funds (ETFs) have seen remarkable growth, with a staggering $18.779 billion in volume within their first seven days of trading. In fact, taking to X (formerly Twitter), Bloomberg analyst James Seyffart highlighted that over $2 billion was traded on 22 January alone. 

GBTC outflows

While the newly launched funds from companies such as BlackRock, Bitwise, and Fidelity have experienced inflows, billions of dollars in Bitcoin (BTC) have been withdrawn from Grayscale Bitcoin Trust (GBTC). This significant shift in investor preference is likely due to lower fees and greater liquidity offered by these new products. 

Notably, GBTC saw its largest outflow yet on 22 January, exceeding $640 million. This marks a continued and escalating trend in outflows, with the total hitting $3.45 billion to date.

Seyfart tweeted,

“Woof. BAD day for #Bitcoin ETFs overall in the Cointucky Derby. $GBTC saw over $640 million flow out today. Outflows aren’t slowing — they’re picking up. This is the largest outflow yet for GBTC.”

Moreover, FTX’s bankruptcy estate significantly impacted the market by liquidating all of its holdings of 22 million GBTC shares. This divestment, valued at approximately $1 billion, is a major contributor to the recent outflows from GBTC.

However, despite significant outflows from GBTC, it maintained over half of the total trading volume impressively. 

A look at BTC inflows

Additionally, recent data from Lookonchain highlighted significant activity among major Bitcoin ETFs. The iShares Bitcoin Trust added 4,808 BTC (worth approximately $194.4 million) from Coinbase Prime, bringing its total holdings to 33,431 BTC (valued at around $1.33 billion) to date. 

Meanwhile, the Fidelity Bitcoin ETF (FBTC) received an influx of 5,312 BTC (worth about $216.3 million), reaching a total of 29,907 BTC (approximately $1.22 billion). 

Finally, Bitwise Bitcoin ETF (BITB) acquired 1,352 BTC (valued at $55.71 million) from Flow Traders, with its current holdings at 10,152 BTC (approximately $412.71 million).

A surge in numbers

The remarkable ETF journey began on 11 January 2024, when the U.S. approved the trading of Bitcoin ETFs. On the first day of trading, the combined volume across all Bitcoin ETFs exceeded $4.6 billion. GBTC, after its conversion to an ETF, reported a volume of approximately $2.3 billion. Not far behind were IBIT with $1 billion and FBTC with $712 million in volumes. 

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