Bitcoin futures ETFs hit an all-time high daily trading volume of $2 billion on Wednesday, January 11, 2024, as institutional investors continued to pour money into the cryptocurrency market.

The ProShares Bitcoin Strategy ETF (BITO), VanEck Bitcoin Strategy ETF (XBTF), and Valkyrie Bitcoin Strategy ETF (BTF) led the pack with a combined trading volume of $1.97 billion, accounting for 97% of the record-breaking figure. This surge in trading volume coincided with the launch of 11 new spot bitcoin ETFs that were approved by the US Securities and Exchange Commission (SEC) earlier this week.

Among the spot bitcoin ETFs, BlackRock’s IBIT ETF led the pack with $1.05 billion in trading volume on its first day, surpassing the $1 billion first-day volume of BITO in 2021. Fidelity’s FBTC ETF also saw significant activity, generating nearly $685 million in trading volume.

Grayscale Investments’ converted spot bitcoin ETF product (GBTC) generated greater trading volume than both BlackRock’s and Fidelity’s ETFs, reaching about $2.3 billion. However, it is unclear how much of this volume represented capital flowing out of GBTC, as the fund is undergoing a conversion to an ETF structure.

Bloomberg ETF analyst Eric Balchunas speculated that most of Grayscale’s trading volume was likely “all selling,” as opposed to an inflow of fresh capital. This is because investors may be selling their GBTC shares in anticipation of the converted ETF being more liquid and tradable.

The ARK 21Shares bitcoin ETF (ARKB) generated $278 million worth of trading volume on day one, while Bitwise’s BITB ETF followed closely behind with $122 million. The remaining ETFs experienced more muted trading volumes, with Franklin Templeton’s EZBC, Invesco Galaxy’s BTCO, and VanEck’s HODL all witnessing volumes below $100 million. Valkyrie’s BRRR, WisdomTree’s BTCW, and Hashdex’s DEFI trading volumes are still below $10 million.

Despite the strong start for spot bitcoin ETFs, some analysts remain cautious about the outlook for the market.

“I think it’s likely that we’ll see some [volume] settling down,” James Seyffart, a Bloomberg ETF analyst, told CNBC. “We’re still in a very nascent stage of the ETF market for Bitcoin.”

Overall, the launch of spot bitcoin ETFs is a major milestone for the cryptocurrency industry and could potentially lead to increased institutional investment and mainstream adoption of Bitcoin. However, it remains to be seen how the market will react in the long term.

Here are some key takeaways from the latest Bitcoin ETF news:

Bitcoin futures ETFs experienced an all-time high trading volume of $2 billion on Wednesday.
11 new spot bitcoin ETFs launched this week, marking a significant development for the cryptocurrency industry.
BlackRock’s IBIT ETF led the pack with $1.05 billion in trading volume on its first day.
Grayscale’s converted spot bitcoin ETF generated greater trading volume than IBIT and FBTC, but it is unclear how much of this volume represented capital inflows.
The outlook for the spot bitcoin ETF market remains uncertain, but there is potential for increased institutional investment and mainstream adoption of Bitcoin.