Bitcoin ETFs inch towards $10B in 3 days despite slow start

• The trading volumes of Bitcoin ETFs have surged to new highs.
• The movement of old whales raised concerns of possible sell-off.

Optimism inspired by the Bitcoin [BTC] ETFs approval slowly waned after the price of BTC crashed following the event. But despite this, the latest occurrences have instilled hope in traders.

Not yet the end for Bitcoin ETFs?

Despite things seeming dull on the surface, Bitcoin ETFs have started making their mark, slowly yet steadily.

According to Bloomberg analyst James Seyffart, the aggregate trading volume of U.S. Bitcoin spot ETFs surpassed $10 billion within three days.

Grayscale GBTC led the pack, with a three-day trading volume of $5.174 billion, followed by BlackRock’s IBIT at $1.997 billion and FBTC at $1.479 billion, totaling $9.771 billion in ETF trade volumes.

Update on the #Bitcoin ETF Cointucky Derby. The ETFs have traded almost $10 billion total over 3 days. Will have updated flows and assets later tonight or tomorrow morning. pic.twitter.com/OnpCshjYJP

— James Seyffart (@JSeyff) January 16, 2024

Seyffart added that these launches were deemed highly successful by most metrics, with the only exception being Wisdomtree, which reported $3.25 million in assets on its third day.

By most any metric — these are all very successful launches. The only caveat to that might be Wisdomtree at just $3.25 mln in assets but its only day 3 — this is a LONG race.

— James Seyffart (@JSeyff) January 16, 2024

This heightened activity suggested growing interest from institutional investors, potentially increasing Bitcoin’s liquidity and market depth.

The success of these launches also enhanced Bitcoin’s legitimacy in traditional financial markets, signaling a positive direction for its future.

As the race unfolds, continued institutional participation could further solidify Bitcoin’s position as a compelling investment option for people unfamiliar with crypto.

Troubles ahead?

However, recent developments could cause skepticism around the king coin. One of them was the movement of massive amounts of BTC by largely dormant accounts.

According to a tweet by Arkham Intelligence, on the 16th of January, large addresses, assumed to be linked together, moved $2 billion worth of BTC.

$2 BILLION of dormant Bitcoin moved just before US market open today, across several linked addresses.

The BTC had moved once in 2019, and before that had been dormant since 2013. pic.twitter.com/xD4frjzQuP

— Arkham (@ArkhamIntel) January 16, 2024

Read Bitcoin’s [BTC] Price Prediction 2024-25

This sudden whale movement could strike uncertainty amongst holders, as the fear of a sell-off looms. However, until the time of writing, there had been no significant impact on BTC.

At press time, Bitcoin was trading at $42,715.13, with its price growing by 0.4% in the last 24 hours.

Source: Santiment