Bitcoin

Grayscale Bitcoin Trust

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/exploring-high-trading-volumes-in-bitcoin-etfs-more-than-meets-the-eye" rel="noopener noreferrer nofollow">Exploring High Trading Volumes in Bitcoin ETFs: More Than Meets the Eye</a><br></p>
<p style="text-align: justify">The recent surge in <a href="https://en.bitcoinhaber.net/ark-invests-strategic-shift-from-gbtc-to-bito" rel="noopener noreferrer nofollow">Bitcoin</a>‘s price to over $54,900 has kept the market abuzz, with a particular focus on the activities surrounding new spot Bitcoin Exchange Traded Funds (ETFs). A New York Digital Investment Group (NYDIG) report challenges the typical interpretation of high trading volumes, which often suggests significant investor interest in these financial products.</p>
<h2 id="nydig-research-head-questions-common-assumptions">NYDIG Research Head Questions Common Assumptions</h2>
<p style="text-align: justify">Greg Cipolaro, NYDIG’s Global Head of Research, expressed in a recent article that daily trading volumes may not reflect actual fund inflows, thus debunking a widespread belief in the investment community. Contrary to what some might think, Cipolaro advocates for the Grayscale Bitcoin Trust (GBTC), ranking it as a top investment choice among Bitcoin ETFs despite the nuanced nature of trading volume indicators.</p>
<p style="text-align: justify">Since the initiation of spot ETFs on January 11, GBTC has seen impressive daily trade volumes that total over $20 billion. Nevertheless, Grayscale’s funds have experienced a substantial $7 billion drop in assets under management (AUM), highlighting the weak link between trading volumes and actual capital inflow.</p>
<h2 id="dissecting-the-performance-and-turnover-rates">Dissecting the Performance and Turnover Rates</h2>
<p style="text-align: justify">Comparatively, BlackRock’s iShares Bitcoin Trust (IBIT) has amassed about $13 billion in trades—just over half of GBTC’s performance—and yet has witnessed its AUM grow from nothing to roughly $7 billion. Cipolaro emphasizes the importance of evaluating a fund’s turnover rate, which is calculated by dividing dollar-denominated trading volume by the fund’s net asset value.</p>
<p style="text-align: justify">This metric offers insights into the behavior of investors and traders, potentially shedding light on their motivations. Across all spot Bitcoin ETFs, the aggregate turnover rate stands at 5.3%, with Valkyrie (BRRR) and GBTC at the lower end, each with rates around 2.2% and 2.4%. Ark 21 (ARKB) leads the pack with an 11.3% turnover rate, while WisdomTree (BTCW), the smallest by AUM at approximately $30 million, astonishingly hit a 205% turnover rate over five days.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/exploring-high-trading-volumes-in-bitcoin-etfs-more-than-meets-the-eye" rel="noopener noreferrer nofollow">Exploring High Trading Volumes in Bitcoin ETFs: More Than Meets the Eye</a></h5>

Exploring High Trading Volumes in Bitcoin ETFs: More Than Meets the Eye

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