Bitcoin (BTC) institutional investment vehicles have seen a significant increase in trading volume amid excitement over possible regulatory changes in the United States.
Data from sources such as Bloomberg show that weekly inflows into Bitcoin exchange-traded funds (ETFs) and other funds are near record levels.
Recently, GBTC trading volume reached $2.5 billion
The suggestion that the United States may soon allow ETFs based on the spot price of Bitcoin has not only impacted BTC’s price action, but the surrounding ecosystem has benefited as well.
In addition to exchanges and mining companies, beleaguered institutional investment options have also seen a revival in demand.
As Bloomberg senior ETF analyst Eric Balchunas noted, at least two household names saw “significant” trading volume in the trading week ending Oct. 27.
These include the ProShares Bitcoin Strategy ETF (BITO), the first futures ETF to be approved in the United States in 2021.
“$BITO had $170 million in trading volume last week, its second-largest week since its wild first week,” Balchunas wrote in an X comment.
He noted that volume in the Steadfast Grayscale Bitcoin Trust (GBTC) reached $800 million, helping to push its discount to Bitcoin’s spot price to a two-year low.
“This puts $2.5b (top 1% of ETFs) into two less-than-ideal methods of exposure (relative to spot) = While we think spot ETFs are unlikely to set records on day one, there is clearly an audience, “X’s post concluded.
It is worth noting: $small Trading volume last week was $1.7b, the second largest week since the wild first week. $GBTC Made $800 million.This puts $2.5b (top 1% of ETFs) into two less-than-ideal methods of exposure (relative to spot) = While we think spot ETFs are unlikely to set records on day one, there is clearly an audience pic.twitter.com/6bFYtE0UoR
— Eric Balchunas (@EricBalchunas) October 28, 2023
Others also took note of the data, including William Clemente, co-founder of crypto research firm Reflexivity. describe ETF trading “fully resumed.”
Traditional finance may ‘know something we don’t know yet’
According to Cointelegraph, GBTC has seen a significant rebound in recent months, even before BTC/USD rose 15% last week.
Related: U.S. Court Authorizes Grayscale Ruling, Paving the Way for SEC Review of Spot Bitcoin ETFs
Fueled by a legal victory on the long road to gaining permission to convert GBTC into a spot ETF, Grayscale’s product now trades at an implied share price that’s just 13.1% below the spot price of BTC.
Every data According to data from monitoring resource CoinGlass, this is the lowest level since November 2021, when Bitcoin itself was trading at all-time highs.
Popular Bitcoin and altcoin trader Mister Crypto says: “GBTC discount continues to shrink” responded.
“Maybe TradFi knows something we don’t know yet…”
Nonetheless, investment management firm ARK Invest reduced its holdings of GBTC as the stock price rose.
While ARK itself plans to launch a Bitcoin spot ETF, GBTC currently accounts for 10.24% of its ARK Next Generation Internet ETF (ARKW), the first change since November 2022.
This article does not contain investment advice or recommendations. Every investment and trading activity involves risks, and readers should do their own research when making decisions.
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