New Bitcoin ETFs See More Individual Trades Than Top Two Equities ETFs: Bloomberg Analyst

By The Daily Hodl February 29, 2024 In Bitcoin

A prominent Bloomberg analyst says that Bitcoin (BTC) exchange-traded funds (ETFs) – which only launched in January – are seeing more individual trades than the top two ETFs in the equities markets.

In a new thread, Bloomberg senior ETF analyst Eric Balchunas tells his 243,600 followers on the social media platform X that BTC ETFs are outpacing both the SPY and QQQ ETFs over the last day even before traders have access to options contracts on many platforms.

“This is [a] wild stat: there were more individual trades yesterday in the Bitcoin ETFs than there were in SPY or QQQ. And this is before they have options and/or are available on many advisory platforms. Definitely a big retail component given [the] size of trades. Bigger [than] I estimated.”

According to Balchunas, the majority of the transactions were on the smaller side and only a handful of trades managed to reach at least $1 million, suggesting that retail traders are largely behind the volume on Bitcoin ETFs.

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“I’ll try to dive in later but at first glance you see like a couple $10 million trades. A dozen or so $1 million ones then it cascades down to small sizes for the vast bulk of them. Something like that.”

Balchunas goes on to agree with Bitwise Invest chief executive Hunter Horsely’s assessment that the launch of BTC ETFs were essentially Bitcoin’s “initial public offering (IPO) moment.”

“’Bitcoin ETFs were Bitcoin’s IPO moment, now available to any investor with the click of a button.’

This is what I’ve been trying to say to the underwhelmers. Can’t overstate how easy, cheap, standardized ETFs make stuff, in this case the fact they [are] ‘regulated’ is the cherry on top.”

Bitcoin is trading for $63,842 at time of writing, an 11.69% increase during the last 24 hours.

Featured Image: Shutterstock/Amin Zeinoddini/Sensvector

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