Bitcoin (BTC) institutional investment vehicles have seen a significant surge in volume due to the potential for regulatory changes in the United States.
Data from various sources, including Bloomberg, indicate that Bitcoin ETFs and other such instruments are close to hitting record levels of weekly inflows.
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BITO, GBTC trade $2.5 billion
Speculations that the U.S. will soon allow a Bitcoin spot price-based ETF have had a major effect on the BTC market — and the related ecosystem as well.
In addition to exchanges and mining firms, institutional investment options have seen a boost in demand.
According to Bloomberg senior ETF analyst Eric Balchunas, two well-known ETFs had “notable” trading volumes in the week ending Oct. 27.
The ProShares Bitcoin Strategy ETF (BITO) was one of them — the first futures-based ETF to be approved in the U.S. in 2021.
“$BITO traded $1.7b last week, 2nd biggest week since its wild WEEK ONE,” Balchunas posted on X (formerly Twitter).
He also stated that the Grayscale Bitcoin Trust (GBTC) traded for $800 million, decreasing its discount to the Bitcoin spot price to two-year lows.
“That’s $2.5b (top 1% among ETFs) into two less desirable methods (vs spot) for exposure = while we think spot ETFs unlikely to set records on DAY ONE, clearly there’s an audience,” the X post concluded.
Others also noticed the data, with William Clemente, co-founder of crypto research firm Reflexivity, calling ETF trading “back in full steam.“
Legacy finance could “know something we don’t yet”
As Cointelegraph reported, GBTC has seen a remarkable comeback in recent months, even prior to BTC/USD gaining 15% last week.
Legal victories on the long road to gaining permission to convert GBTC into a spot ETF provided kindling, and Grayscale’s product now trades with an implied share price, which is just 13.1% below the BTC spot price.
Per data from monitoring resource CoinGlass, this is the lowest since November 2021, when Bitcoin itself was at all-time highs.
“The GBTC discount keeps narrowing,” popular Bitcoin and altcoin trader Mister Crypto meanwhile responded.
Despite this, investment management firm ARK Invest has reduced its GBTC holdings in step with the share price gains.
While ARK itself plans a Bitcoin spot ETF launch, GBTC now accounts for 10.24% of its ARK Next Generation Internet ETF — its first change since November 2022.
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