On the very first day of trading, the US spot Bitcoin Exchange Traded Funds (ETFs) have made a resounding entrance into the markets, surpassing some of the most established ETFs in terms of volume. The total spot Bitcoin volume outdid the volumes of both the SPDR S&P 500 ETF Trust (SPY US) and the Invesco QQQ Trust Series 1 (QQQ US), a testament to the burgeoning interest in cryptocurrency as an investment asset.

The number of trades for spot Bitcoin ETFs closely mirrors that of SPY and QQQ, suggesting that Bitcoin is not only attracting the attention of institutional investors but is also becoming a favourite among retail investors. This blend of interest could indicate a robust demand for Bitcoin ETFs, setting a promising stage for future trading volumes.

When we talk about ‘notional’ in trading, we’re referring to the total value of a position, factoring in the leverage used in the trade. In this context, ‘notional traded’ implies the sum value of all the shares traded, multiplied by their respective share prices. The data suggests that while the volume of shares and the number of trades for Bitcoin ETFs are high, the notional traded will take time to accrue significance, given the nature of T+1 accounting.

It’s crucial to note that the asset and flow data for spot Bitcoin ETFs, due to T+1 accounting practices, may not always showcase the most current information. T+1 accounting means that transactions are settled one business day after the trade is executed. This delay can sometimes lead to a lag in data representation, which investors should account for when analyzing market data.

The image accompanying this analysis provides a vivid breakdown of the trading data:

• The Volume of Shares pie chart shows that Spot Bitcoin ETFs held a significant portion of the total shares traded, showcasing a split among the three contenders.
• The Notional Traded pie chart highlights the proportion of the total value of the traded shares, where Spot Bitcoin ETFs again mark a substantial presence.
• Finally, the Number of Trades pie chart illustrates the total trades executed, with Spot Bitcoin ETFs competing closely with SPY and QQQ.

The initial trading data for US spot Bitcoin ETFs marks a significant milestone in the integration of cryptocurrency with traditional financial instruments. The keen interest reflected in the volume of shares and number of trades points to a strong market presence and potential for growth. Investors should keep a close watch on how these ETFs perform as the market adjusts to the inclusion of cryptocurrency in more conventional investment portfolios.