GBTC ETF Volume Approaches BTC ETF
After gaining approval from the Securities and Exchange Commission (SEC) for spot Bitcoin ETFs, it is predicted that BlackRock’s fund may surpass Grayscale in trades. On January 29, Bitcoin (BTC) rallied and rose by over 2% in a single day, surpassing the $43,000 mark. Additionally, BTC’s trading volume increased by almost 20% in just 24 hours, as the leading cryptocurrency aimed to recover from a 10% drop on January 22 when it fell below $40,000.
The significant decline in Bitcoin’s price was primarily attributed to the selling pressure from GBTC outflows, the converted BTC exchange-traded fund issued by Grayscale, a well-known crypto asset manager. GBTC outperformed other ETFs from BlackRock and Fidelity in terms of trading volume during the first two weeks, with approximately $4 billion in outflows recorded.
However, Bloomberg’s James Seyffart suggests that this trend may soon change. Data indicates that BlackRock’s iShares Bitcoin Trust (IBIT) had a trading volume that was $2 million higher than Grayscale’s GBTC just two hours after trading opened. According to the Arkham Intelligence dashboard, which monitors issuer wallets, BlackRock also owns more than 52,000 Bitcoins worth over $2.1 billion at current prices.
While Grayscale regained its trading lead at the time of writing, it is possible that BlackRock’s fund could become the first spot BTC ETF to surpass GBTC’s trading volume since the SEC approved such crypto-based investment products on January 10.
Another factor that may influence Bitcoin’s price movement is the upcoming Federal Reserve’s Federal Open Market Committee meeting. According to the CME FedWatch tool, there is a 97.9% likelihood that the Fed will maintain its interest rate range of 5.25%-5.5% and keep rates unchanged.
In related news, Google has announced plans to adjust its crypto ad policy and increase the visibility of Bitcoin ETFs. Stay updated by following us on Google News.
