Fierce Competition Between BlackRock and Fidelity As Volume Surges
Bloomberg’s Eric Balchunas reports that ‘Nine’ spot Bitcoin ETFs witnessed a surge in trading volume on Friday. Bitcoin ETFs experienced a 12% increase in trading volume compared to Thursday; There was an increase of 53% compared to Wednesday. Balchunas highlighted the fierce competition between Fidelity (FBTC) and BlackRock (IBIT) to top the list.
The recently launched ETP set is in the top 1% of all ETFs with total daily volume of $1.2 billion. The reporter noted that individually, both $FBTC and $IBIT are in the top 2%. This is extraordinary, he noted, given that the average age of ETFs in this category is around 14 years.
Grayscale premium below 30 basis points
Meanwhile, Grayscale GBTC It shows significantly higher transaction volumes compared to other products, making it a major player in the investment field. Clearly, GBTCs Market activity is huge relative to the rest of the market.
According to Bloomberg Terminal data, the fund’s percentage premium at the time of writing is -0.296%. This means the market price of the trust is slightly below the NAV.
However, Bitcoin is priced around $41,500 at the time of this writing.
Why is Bitcoin range limited?
There is a modest 0.7% upside, maintaining the 24-hour range between $40,299.98 and $42,093.91, according to CoinGape analysis. While some are worried about Bitcoin taking profits after the ETF launch, crypto veteran Vijay Boyapati has a different approach. According to this BoyapatiBitcoin’s price depends intricately on the size and stability of its liquidity channels.
In a post on X, he explained that the recent approval of ETFs creates the largest and most stable liquidity channel to date. Crypto analyst: ‘It will take time for the channel to be fully exploited, but it will happen.’ said.
Boyapati drew an analogy of this development to the US interstate system, explaining that initial use may be modest but provides capacity for future growth. In the case of Bitcoin, a shorter time delay is envisaged for this liquidity channel to be fully utilized.
So read: Bitcoin ETF: $580 Million Net Outflow from Grayscale GBTC Recorded on Day 5
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Shraddha’s professional journey spans more than five years; During this time, he worked as a financial journalist, providing information about the business world, markets and cryptocurrencies. As a reporter, he placed particular emphasis on learning about market interaction with emerging technologies.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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