Grayscale’s Bitcoin Trust (GBTC) Outpaces Majority of ETFs with Half a Billion in Trading Volume

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Grayscale’s Bitcoin Trust (GBTC) has demonstrated significant trading volume, surpassing the majority of existing exchange-traded funds (ETFs).

According to industry expert Eric Balchunas, the fund traded close to half a billion dollars on January 8, outshining more than 99% of the approximately 3,000 current ETFs.

Balchunas highlighted that if spot Bitcoin (BTC) ETFs are approved this week, Grayscale will enter the market with substantial trading volume, indicating a significant advantage over its competitors.

Grayscale aims to convert its Bitcoin Trust into a spot ETF, pending approval from the Securities and Exchange Commission (SEC). 

This move would allow the trust to align with the evolving regulatory landscape and provide investors with enhanced access to Bitcoin.

“GBTC traded close to half a billion today, which is more than 99% of the 3000 current ETFs, and reminder that they are bringing a (volume) gun to a knife fight if they launch with everyone else,” Balchunas wrote. 

$GBTC traded close to half a billion today, which is more than 99% of the 3000 current ETFs, and reminder that they are bringing a (volume) gun to a knife fight if they launch with everyone else. That said, the 1.5% fee will act as a repellent. Another fascinating sub-plot. pic.twitter.com/506EG3PR7t

— Eric Balchunas (@EricBalchunas) January 8, 2024

Crypto Mining Firms Record High Trading Activity

In addition to Grayscale’s impressive trading volume, crypto mining firms have experienced robust trading activity on American stock exchanges. 

On January 8, four prominent mining companies, including Marathon Digital, Riot Platforms, Cleanspark, and Terawulf, collectively amassed a trading volume of $208 million, as per data by Yahoo Finance.

Marathon Digital, in particular, emerged as the most heavily traded stock in the United States on that day, with a trading volume of $112 million, surpassing renowned tech giants such as Tesla, AMD, Nvidia, and Apple. 

Tesla, the second most traded stock in the U.S. on Monday, recorded a daily trading volume of approximately $85 million, illustrating Marathon Digital’s significant lead.

This exceptional performance by Marathon Digital reflects the ongoing boom in the Bitcoin mining sector. 

Core Scientific, another prominent player in the industry, recently secured a $55 million equity investment as it successfully emerged from its debt crisis. 

The oversubscribed equity offering, which expired last week, positions Core Scientific for a relisting on the Nasdaq exchange once the bankruptcy proceedings are finalized, aligning the firm with other successful mining stocks.

Furthermore, CleanSpark, a key player in the sector, announced a strategic agreement to potentially acquire up to 160,000 miners by the end of 2024. 

Over 90% Chance for Spot Bitcoin ETF Approval

As reported, Bloomberg analysts are increasingly optimistic about the approval of a spot Bitcoin ETF in the United States, with the odds now exceeding 90%. 

In a recent post, Bloomberg ETF analyst Eric Balchunas commented on the likelihood of the Securities and Exchange Commission (SEC) rejecting proposals following a flurry of updated filings. 

Balchunas stated that he would assign a mere 5% chance of rejection, leaving a small possibility open for such outcomes. 

On the other hand, participants on Polymarket, a platform where users can place bets on various outcomes, have displayed a less optimistic view regarding the approval timeline. 

The betting market on Polymarket suggests that the odds of approval before January 15 have decreased, with participants wagering around $500,000 on the approval being delayed or even denied. 

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