Buoyed by the recent surge in prices, trading in Bitcoin Spot ETFs recently reached an all-time high. The cumulative volume of the 10 main trackers in this segment is now approaching $50 billion.
A meteoric rise for Bitcoin Spot ETFs
Bitcoin Spot ETFs recently reached a record high in terms of volumes traded. According to Bloomberg Intelligence data analysed by ETF expert James Seyffart, the cumulative volume of the top 10 trackers in this market is now close to $49.7 billion.
The Grayscale Trust ETF dominates the market by a wide margin, with trading totalling $20 billion, representing over 40% of total volume, despite ongoing outflows. It is well ahead of the BlackRock tracker ($13.5 billion) and the Fidelity tracker ($9 billion). Together, these three behemoths account for more than 80% of transactions on the Bitcoin Spot ETF market.
Meanwhile, other players are struggling to emerge in this highly competitive market. For example, small player Valkyrie only generates $79 million in trading, well behind competitors such as VanEck ($95 million), Franklin Templeton ($87.5 million) and WisdomTree ($25 million). It must therefore strive to catch up quickly.
A favourable market Why are these trackers so popular? Apart from their undeniable accessibility, they benefit above all from the upward trend in Bitcoin.
Many analysts expect the rally to continue. According to Ali Martinez, a well-known crypto analyst, BTC could soon reach $57,000 thanks to the arrival of new investors. Max Keiser is even more enthusiastic, envisaging a rise to $500,000 in the event of a collapse in the US stock markets.
Whatever the case, these encouraging prospects are fuelling the craze for Bitcoin Spot ETFs and mechanically boosting their already impressive trading volumes.
Innovations to attract investors
Given this success, new players are preparing to join the market to take advantage of this trend. For example, fund manager WisdomTree is planning to transform its futures-linked product into a true physical ETF that directly tracks the price of BTC.
For its part, Valkyrie is stepping up its efforts to catch up: the small player has just expanded its bitcoin depositories by teaming up with security specialist BitGo. The move is designed to reassure potential investors about the solidity of its infrastructure.
As the cryptocurrency market matures, Bitcoin Spot ETFs are positioning themselves as the preferred investment vehicles for gaining exposure to the BTC price. The competition for market share has only just begun…
