Key Points
- U.S. spot bitcoin ETFs have garnered nearly 90% of the daily trading volume market share, outperforming futures ETFs.
- Leading contributors to the robust trading volume of spot bitcoin ETFs are BlackRock’s IBIT, Grayscale’s GBTC, and Fidelity’s FBTC funds.
U.S. spot bitcoin ETFs have seen a significant surge in popularity since their introduction just two months ago. They now hold nearly 90% of the daily trading volume market share for ETFs that offer price exposure to bitcoin.
Futures ETFs Lagging Behind
In comparison, bitcoin futures ETFs, which were introduced in 2021, now hold only a 10% share. This is the highest percentage of daily volume market share for spot bitcoin ETFs to date, demonstrating investors' preference for direct bitcoin exposure via ETFs rather than bitcoin futures contracts.
The trading volume for spot bitcoin ETFs has remained strong since their launch on January 11, with a total volume of $113.5 billion. The leading contributors to this volume have been BlackRock’s IBIT, Grayscale’s GBTC, and Fidelity’s FBTC funds.
Outflows from GBTC
GBTC, however, has witnessed over $11 billion worth of outflows, according to data from BitMEX Research. Earlier this year, analysts from JPMorgan projected that GBTC could see outflows of up to $13 billion in 2024, primarily due to its 1.5% fees, which are considered high compared to other spot bitcoin ETFs.
Analysts also predicted a rise in popularity for spot bitcoin ETFs among retail investors. They suggested that institutional investors could transition from futures-based ETFs and GBTC to spot bitcoin ETFs. The current 90% daily volume market share of spot bitcoin ETFs aligns with these predictions.
In 2022, the price of bitcoin has soared, currently trading at around $72,150. This price surge has led to more money flowing into spot bitcoin ETFs. David Lawant, the head of research at FalconX, stated that bitcoin prices are now also driving inflows into spot ETFs.
