- Spot bitcoin ETFs continue to see high trading volume, exceeding $3.1 billion on Friday.
- BlackRock and Fidelity lead among issuers, while Grayscale remains the most active overall.
- Bitcoin price suffers due to market volatility, falling 10% below $42,000.
- Despite the price dip, industry experts remain optimistic about the long-term impact of ETFs.
The excitement surrounding spot bitcoin ETFs continued to surge on Friday, with a second day of trading exceeding $3.1 billion in volume. This brings the combined total for the first two days to a whopping $7.7 billion, suggesting strong investor appetite for these new products.
While the enthusiasm for ETFs was undeniable, bitcoin itself took a tumble, crashing 10% below $42,000 and triggering over $338 million in liquidations across the crypto market. This wiped out most of the gains Bitcoin had made in the lead-up to the ETF launch, media reports said.
Big Players Drive ETF Adoption
BlackRock and Fidelity emerged as the frontrunners among issuers, with $564 million and $431 million traded in their respective spot bitcoin ETFs on Friday. Grayscale’s converted GBTC fund remained the most active overall, boasting $1.8 billion in volume.
Despite initial speculation of significant outflows from Grayscale’s ETF, analysts later revised their estimates to a mere $95 million, suggesting a stronger-than-expected adoption. This fueled optimism among industry experts, with Bitwise CEO Hunter Horsley claiming, “every dollar invested in our ETF represents a decision by investors to trust our company.”
Market Sees Legitimization, Bitcoin Feels the Heat
The crypto community largely viewed the strong ETF debut as a sign of mainstream acceptance and a potential catalyst for further growth. “Increased investor accessibility to bitcoin, plus the supply decreasing post-halving are possible signs that the crypto market will continue to trend upward throughout 2024,” said Kadan Stadelmann of Komodo Platform.
However, bitcoin’s price paid the price for the day’s volatility, slipping to $43,765 by the closing bell.
