Grayscale, BlackRock and Fidelity continue to dominate the Bitcoin ETF market, accounting for more than 90% of total trading volume. However, overall daily volume is starting to decline: on Tuesday it was $1.8 billion, and on Wednesday it was $1.5 billion.
“In the medium to long term, the development of ETFs is great news for crypto as an asset class, as it truly puts BTC on the map for millions of investors,” said Douglas Comin, a senior trader at cryptocurrency platform XBTO.
However, it will take time for a steady influx of cryptocurrency to build, and the recent frenzy may have caused short-term traders to seek quick profits, an XBTO spokesperson said.
Meanwhile, the price of Bitcoin, after exceeding $48,000 last week, fell below $43,000 just as the first Bitcoin ETFs began trading.
Bloomberg Intelligence analyst Eric Balchunas said that, unlike the BTC-ETF, all 500 2023 exchange-traded funds for other commodities showed a total trading volume of $450 million during one trading session on Tuesday, January 16.
Meanwhile, JPMorgan CEO Jamie Dimon criticized Bitcoin, advising investors not to engage with it under any circumstances. Interestingly, his company is participating in the issuance of a Bitcoin ETF from BlackRock.
Source: Bits
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