Bitcoin ETF Hits $9.7 Billion Trade Volume in Just 3 Days

• SEC's Historic Approval of 11 Bitcoin ETFs Creates Excitement within the Crypto Industry
• Trading Volume for Bitcoin ETF Exceeds $9.7 Billion
• Changes in Flows within the Bitcoin ETF
• Could Spot Bitcoin ETFs Result in Increased Crypto Capital Inflow?
• Potential Impact on Other Cryptocurrencies

SEC's Historic Approval of 11 Bitcoin ETFs Creates Excitement within the Crypto Industry

The US Securities and Exchange Commission's approval of 11 Bitcoin$42,260 -0.64% (BTC) Exchange Traded Funds (ETFs) has been a significant event in the history of the cryptocurrency industry. The enthusiasm surrounding this new investment vehicle is reflected in the huge trading volume it has generated.

Trading Volume for Bitcoin ETF Exceeds $9.7 Billion

Trading volume for the Bitcoin ETF has surpassed $9.7 billion within just the first three days according to James Seyffart, a Bloomberg analyst. However, Seyffart also pointed out that Grayscale's Bitcoin Trust (GBTC) experienced a loss of over $1 billion during the same period. This may be due to investors exiting as the gap between GBTC and BTC hit a near three-year low.

Changes in Flows within the Bitcoin ETF

Seyffart suggests that the inflows into other BTC ETFs may not counterbalance the outflows from GBTC. Additionally, there might be discrepancies in calculating the inflows and outflows due to settlement processes. Previously, GBTC was a profitable venture for investors who benefited from the Grayscale premium, which hit a peak of 43% in July 2019. However, this premium turned into a discount in February 2021, ending the arbitrage trading.

Could Spot Bitcoin ETFs Result in Increased Crypto Capital Inflow?

The spot BTC ETF is likely to result in more financial institutions venturing into the crypto space. Arthur Hayes, Chief Investment Officer at the family office of Maelstrom and former BitMEX CEO, suggests that BTC ETFs could potentially attract significant capital from the traditional financial markets. Hayes believes that spot Bitcoin ETFs could create new trading opportunities by allowing traders to take advantage of price differences between US benchmarks and global markets.

Potential Impact on Other Cryptocurrencies

Profits from spot Bitcoin (BTC) ETFs could potentially flow into other cryptocurrencies, potentially causing a market rally. Moreover, the approval of a spot BTC ETF has paved the way for the SEC to approve spot ETFs for other cryptocurrencies. There is prevalent speculation about a potential spot Ethereum$2,315 -2.42% (ETH) ETF entering the market later this year.

Edited by Jonathan Stoker