Bitcoin ETF Trading Volume Doesn't Equal Investor Demand
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High trading volume doesn't necessarily mean strong buying interest or inflows for Bitcoin ETFs. Grayscale's GBTC has seen over $20B in volume but has lost $7B in assets.
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NYDIG's Greg Cipolaro prefers looking at an ETF's turnover ratio (trading volume divided by assets) to gauge investor activity.
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The Bitcoin spot ETF group has seen a 5.3% turnover ratio overall. Valkyrie and GBTC have the lowest at 2.2% and 2.4%.
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Ark 21's ETF has a relatively high 11.3% turnover ratio. WisdomTree's tiny BTCW saw a 205% ratio during one period.
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Cipolaro suspects options markets may explain turnover differences. Ratios may change once options are approved for Bitcoin ETFs.