Grayscale’s Bitcoin Trust (GBTC) has exhibited notable trading activity, surpassing the majority of currently available exchange-traded funds (ETFs).
Industry analyst Eric Balchunas noted that on January 8, the fund recorded a trading volume close to half a billion dollars, outperforming over 99% of the approximately 3,000 existing ETFs.
Balchunas emphasized that in the event of the approval of spot Bitcoin (BTC) ETFs this week, Grayscale would enter the market with considerable trading volume, signifying a notable advantage over its competitors.
Grayscale intends to transform its Bitcoin Trust into a spot ETF, pending approval from the Securities and Exchange Commission (SEC). This strategic shift is aimed at bringing the trust in line with the evolving regulatory environment and offering investors improved access to Bitcoin.
Eric Balchunas highlighted the substantial trading activity of GBTC, stating, “GBTC traded close to half a billion today, which is more than 99% of the 3000 current ETFs, and a reminder that they are bringing a (volume) gun to a knife fight if they launch with everyone else.” This underscores the potential competitive advantage Grayscale may have in terms of trading volume if it enters the market alongside other ETFs.
Crypto Mining Firms Record High Trading Activity
Alongside Grayscale’s notable trading volume, cryptocurrency mining firms have also witnessed robust activity on American stock exchanges. On January 8, four prominent mining companies—Marathon Digital, Riot Platforms, Cleanspark, and Terawulf—collectively generated a trading volume of $208 million, according to data from Yahoo Finance.
Particularly noteworthy was Marathon Digital’s performance, as it emerged as the most heavily traded stock in the United States on that day, boasting a trading volume of $112 million. This surpassed trading volumes of well-established tech giants such as Tesla, AMD, Nvidia, and Apple. Notably, Tesla, the second most traded stock in the U.S. on that Monday, recorded a daily trading volume of approximately $85 million, highlighting Marathon Digital’s substantial lead.
Marathon Digital’s remarkable performance underscores the continued surge in the Bitcoin mining sector. Another significant player, Core Scientific, recently secured a $55 million equity investment, successfully navigating its way out of a debt crisis.
The oversubscribed equity offering, which concluded last week, strategically positions Core Scientific for a relisting on the Nasdaq exchange once the bankruptcy proceedings are concluded, aligning the company with other thriving mining stocks.
In addition to these developments, CleanSpark, a pivotal player in the sector, unveiled a strategic agreement with the potential to acquire up to 160,000 miners by the end of 2024. These moves indicate the dynamic growth and strategic positioning within the evolving landscape of Bitcoin mining.
Over 90% Chance for Spot Bitcoin ETF Approval
According to reports, Bloomberg analysts are increasingly optimistic about the approval of a spot Bitcoin ETF in the United States, with the likelihood now exceeding 90%. In a recent statement, Bloomberg ETF analyst Eric Balchunas expressed confidence in the approval, assigning only a minimal 5% chance of rejection despite a series of updated filings.
Contrastingly, participants on Polymarket, a platform for prediction markets, hold a less optimistic view regarding the approval timeline. The betting market on Polymarket indicates a decrease in the odds of approval before January 15, with around $500,000 being wagered on the possibility of a delay or even a denial.
This discrepancy between analyst predictions and betting market sentiment highlights the uncertainty and diverse perspectives surrounding the approval of a spot Bitcoin ETF in the U.S.
