The Bitcoin Layer

The Bitcoin Layer

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The Bitcoin Layer
The Bitcoin Layer
ETFs begin trading, bitcoin touches $49,000
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ETFs begin trading, bitcoin touches $49,000

Record volume numbers for an asset class ETF launch day, muted price reaction, and (literal) redemption for GBTC holders.

Nik Bhatia's avatar
Nik Bhatia
Jan 12, 2024
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The Bitcoin Layer
The Bitcoin Layer
ETFs begin trading, bitcoin touches $49,000
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Dear readers,

Bitcoin ETFs finally began trading today—vehicles that are legally charged with purchasing and storing part of the network’s maximum supply of 21,000,000 coins. Many felt emotion, especially those who expended 10 years of painstaking effort to bring this asset class into the mainstream investment landscape. Today was one of bitcoin’s most historic moments; it must not be judged by a 0% change in price on the day but by the lasting victory of bitcoin and the will of the investing public. The featured event now begins and the question can finally be answered: will the fact that these new ETFs are spot—required to purchase physical bitcoin and take delivery—squeeze the available supply at current prices? Seatbelts will be required for what’s next.


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Fantastic starting numbers

Let’s start with first-day trading volume. BlackRock’s ETF traded $1 billion, making it one of the largest single ETF debuts of all time. Together, bitcoin ETFs saw $4.5 billion in volume, including about half of that occurring in GBTC alone. To call GBTC’s trading volume record-setting wouldn’t be precise, but more on that shortly. All in all, a day to remember, and a quantity of money moved into this asset class that is certain to make every financial institution take note. Ahem, Vanguard.

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