While high trading volumes in new spot Bitcoin ETFs are often thought to indicate strong investor buying interest, that may not be the case, according to a report from the New York Stock Exchange (NYDIG).
"Daily trading volume is not a reliable indicator of daily fund flows, a common misconception in the industry," Greg Cipolaro, global director of research at NYDIG, wrote in the report.
Cipolaro said that the overall turnover rate of spot Bitcoin ETFs is 5.3%, with Valkyrie (BRRR) and GBTC having the lowest turnover rates of 2.2% and 2.4% respectively. The highest is Ark 21 (ARKB) with 11.3%. He also noted an upside anomaly, with WisdomTree ( BTCW ), the smallest spot ETF with just $30 million in AUM, seeing a 205% turnover rate over a five-day period. (CoinDesk)