It appears that retail traders are using a new tool – ETFs – during this huge Bitcoin rally.
Funds launched last month have seen a surge in trading volumes this week as Bitcoin continues to climb.
For example, the iShares Bitcoin Trust (IBIT) had seen more than 61 million shares change hands as of Wednesday afternoon, according to FactSet. That’s well above its previous record high of about 43 million shares, which came on Tuesday.
Another multi-billion dollar fund, the Fidelity Wise Origin Bitcoin Fund (FBTC) already had more than 14 million shares changing hands on Wednesday, putting it on track to surpass 16.8 million on its first day of trading on Jan. 11. Is.
Meanwhile, the ARK 21Shares Bitcoin ETF (ARKB) was already at its third-highest trading volume on record, putting it within striking distance of its January 11 number.
The highly active market around these funds is likely a sign that retail traders are using ETFs to participate in the Bitcoin rally. The largest cryptocurrency crossed the $60,000 mark on Wednesday for the first time since November 2021.
While ETFs are used by all types of investors, heavy intraday trading shows that retail traders are a large group buying and selling funds.
The trading volume is even more impressive when considering the price. Bitcoin is up nearly 30% since the ETF was approved, and the tracking fund has surged in price over the past six weeks, including this week’s big surge.
Bitcoin ETFs have surged in recent weeks, following the price of the underlying cryptocurrency.
That price change means many funds will see record dollar amounts traded on Wednesday, even if share volume falls just short of the high water mark.
One notable exception to this trend was the Grayscale Bitcoin Trust (GBTC), whose trading volume was still far from January levels. The fund, which has seen billions of dollars in withdrawals since its launch, had about 22 million shares traded as of 1 a.m. in New York on Wednesday, less than half the Jan. 11 number. Still, this means a trading volume of around $1 billion.
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