Bitcoin rebounds but ETF volumes paint a murky picture

<p>Here are the trading volumes on IBIT, which is Blackrock's bitcoin ETF and is destined to be the winner of the low-cost spot race:</p><ul><li>Day 1 – 38m shares</li><li>Day 2 – 23m shares</li><li>Day 3 – 13.65m shares with 35 mins of trading to go</li></ul><p>The moderate volatility in bitcoin today might be some of that but bitcoin is up 1.3% today after a poor start, so that should have pulled in some dip buyers.</p><p>We will have to wait to see the Day 3 inflows but based on the volumes, it's not looking good. It's a similar story with the other 9 new bitcoin ETFs with volumes all below half of Day 1 and some of them already looking dead-on-arrival, particularly WisdomTree's offering with just 17k shares traded today.</p><p> The ongoing question remains: What will happen to all the bitcoin locked up in GBTC. It's now trading at just a 1.5% discount to NAV while charging 1.5% in fees (compared to around 0.2% for others). Presumably money should flow to the low-cost ETFs but maybe I'm putting too much faith in an efficient market.</p><p>As for bitcoin, it continues to coil at the low end of the recent range. Keep an eye out for a bigger move soon.</p>

This article was written by Adam Button at www.forexlive.com.