Grayscale Controls Trading Volume on Bitcoin ETF’s Debut, Prompting Queries

Prominent crypto trader Ran Neuner recently took to Twitter to voice his concerns regarding the highly anticipated launch of the Bitcoin ETF. Despite initial reports stating that the trading volume reached a significant $4.5 billion, Neuner conducted a more thorough analysis of the data, uncovering a less optimistic reality.

In his tweet, Neuner provided a detailed breakdown of the Bitcoin ETF’s first day, revealing that out of the $4.6 billion traded, a substantial portion amounting to $2.3 billion, or 50%, was attributed to the Grayscale Bitcoin Trust (GBTC).

However, Neuner pointed out that the GBTC numbers primarily represented sales and outflows, as GBTC is associated with higher fees and locks up older Bitcoin holdings. Therefore, these figures were not indicative of new investments flowing into the Bitcoin ETF. Neuner suggested that the actual impact in terms of fresh investments might be close to zero.

In response to Neuner’s tweet, prominent crypto investor Steven Budgen provided further insights into potential reasons behind the lackluster debut of the Bitcoin ETF. Budgen highlighted three key factors: the departure of arbitrages from the trade, the opportunity for liquidity, and the high fees associated with GBTC. He suggested that those who sold GBTC might choose to liquidate their assets for cash and open new positions in alternative ETFs.

Neuner and Budgen’s observations shed light on the challenges faced by the Bitcoin ETF on its first day. The focus on GBTC outflows, coupled with concerns about fees and market dynamics, presents a more nuanced perspective on the ETF’s initial trading session.

As the crypto community continues to analyze the data and explore the intricacies of the Bitcoin ETF’s debut, industry experts eagerly anticipate further developments.