Bitcoin ETFs Remain Popular Among Investors Despite Price Slump
Exchange-traded funds (ETFs) backed by bitcoin (BTC) futures contracts traded in the US largely retained their trading volumes last week, despite a slump in the bitcoin price over the course of January.
According to exchange data, the ProShares Bitcoin Strategy ETF (BITO) – the first bitcoin ETF to go live in the US in October last year – saw trading volumes of 40.83m shares during the week from February 7 to 11.
The trading volume marks an increase from the week before when 31.53m shares were traded, and it's roughly in line with the average weekly trading volume of 38.98m shares since the ETF launched.
BITO price and trading volume (bottom) since launch:
Even more surprising, perhaps, is that trading volumes in the second bitcoin ETF to launch, the Valkyrie Bitcoin Strategy ETF (BTF), have increased significantly since last year, despite bitcoin’s price slump.
During the week from February 7 to 11, 7.54m shares of BTF were traded, its highest level ever, exchange data shows. Notably, the ETF saw a major uptick in trading volume around the end of last year, with the higher average volume still remaining to this date.
Compared with last year’s average weekly trading volume of 2.52m shares, the volume in BTF has more than doubled this year to an average weekly volume of 5.3m shares.
The launch of BTF was largely overshadowed by the successful first launch of BITO, with the second bitcoin ETF to this day remaining a far cry behind BITO in terms of volume.
BTF price and trading volume (bottom) since launch:
Lastly, the third US-listed bitcoin ETF, the VanEck Bitcoin Strategy ETF (XBTF), has also seen a remarkable strength in terms of volume since the bitcoin price peaked in November last year.
Although the all-time high in the weekly
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