Bitcoin to Boost $38 Trillion ETF Trading Volume in 2024?

2023 witnessed $38 trillion in ETF trades, reported Bloomberg’s senior ETF analyst Eric Balchunas. This was derived from $8 trillion in belongings, rating the 12 months because the second-highest in ETF buying and selling exercise.

Additionally Learn: Bitcoin Price: Bitcoin Whales Move 12K BTC Amid Hope Of Spot ETF Early Nod

Regardless of the heavy buying and selling in 2023, 2022 held the highest spot in exercise. The earlier 12 months’s record-breaking efficiency is attributed to elevated ETF buying and selling exercise throughout market downturns, because the shares are usually not performing properly.

Balchunas additionally highlighted that the latest ETF traits point out a brand new norm of total yearly volumes persistently exceeding $30 trillion. This surge is fueled by better participation from institutional traders, a rising variety of ETF choices, and the lowering worth of the greenback, he added.

Nevertheless, the query that arises is: how will potential Bitcoin ETFs impression the general buying and selling exercise in 2024? 

Bitcoin’s giant market awaits

December 29 marked a vital US SEC deadline as all Bitcoin ETF candidates rushed to amend their S-1 paperwork.

Notable candidates like BlackRock and Valkyrie had been amongst those that up to date their submissions on Friday to turn into official ETF contenders with gamers like Grayscale and VanEck. With the Securities and Change Fee (SEC) anticipated to determine on most of those filings in January 2024, the anticipation for a spot Bitcoin ETF approval has been excessive.

Bitcoin advocate Vijay Boyapati underlined previously that Bitcoin ETFs might unlock substantial retail capital. But, opinions have been divided amongst analysts concerning the potential impression of a Bitcoin ETF launch. Critics have debated that it would end in a “sell-the-news” state of affairs slightly than vital inflows. Nevertheless, the involvement of heavyweights like BlackRock might remodel the spot Bitcoin ETF market. Bloomberg Intelligence reported that rich shopper inquiries sign that the market might attain an estimated $100 billion.

Bitcoin by-product buying and selling units information

To not point out that 2023 additionally noticed a exceptional curiosity in digital-asset derivatives. Reports discover that conventional institutional traders have elevated their engagement in crypto choices and futures, particularly in anticipation of the ETF determination. In the meantime, Bitcoin choices buying and selling quantity hit an all-time excessive, as per knowledge from The Block.

Amidst these developments, the general cryptocurrency market cap stands at roughly $1.72 trillion, displaying some weak spot within the final 24 hours. Bitcoin (BTC) is at the moment priced underneath $42,000, primarily based on CoinGecko figures. The king coin’s total market cap is nearing $822 billion.

Ethereum (ETH) follows, priced at about $2,286, with a market cap of roughly $275 billion. Tether (USDT) maintains its peg at $1.00, with a market cap of round $91 billion. This signifies an enormous market ready to enter the ETF phase.

Additionally Learn: VanEck Updates Spot Bitcoin ETF Filing With US SEC
Additionally Learn: Bitcoin ETF Filing: Ark Invest, 21Shares File Another Amendment To Bitcoin ETF Filing

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Shraddha’s skilled journey spans over 5 years, throughout which she labored as a monetary journalist, masking enterprise, markets, and cryptocurrencies. As a reporter, she has positioned explicit emphasis to study concerning the market interplay with rising applied sciences.

The offered content material could embrace the non-public opinion of the creator and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The creator or the publication doesn’t maintain any accountability in your private monetary loss.