Cryptoverse: Will bitcoin behave better on Wall Street?
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Investors have embraced 11 U.S. exchange traded funds (ETFs), tracking bitcoin's spot price, that began trading on Jan. 11 after receiving regulatory approval; after two trading days, they held a total of 644,860 bitcoin worth more than $27 billion, according to data from analytics company Glassnode.
Much of that — more than 500,000 bitcoin — was already held in a Grayscale Bitcoin Trust that had previously been a closed-end fund before it was allowed to relaunch as one of the new ETFs.
The 11 ETFs have seen total inflows of $4.1 billion since Jan. 11, according to CoinShares data.
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View Details» The entrance of the world's largest cryptocurrency into the world's largest stock market «marks the end of the beginning of bitcoin's maturation and growing-up phase», said Glassnode.
It echoed the views of many market players who said the increase in liquidity would tame bitcoin's volatility over time.
«This is a logical, nearly-inevitable evolution as a newborn security with a wildly uncertain value and price matures into a mainstream asset with a million punters punting,» said Brent Donnelly, a currency trader and president of Spectra Markets.
The total value of bitcoin traded on cryptocurrency exchanges is about $500 million a day on average, Donnelly said. By comparison, the U.S. spot bitcoin ETFs recorded $4.6 billion in volume on their first day of trading.
«I would assume even as things normalize, NYSE dollar value traded of bitcoin will be larger than what goes through
