Bitcoin's Global Schedule Creates Price Gaps for ETF Holders

Bitcoin's global schedule has remained unchanged despite its growing popularity among institutional investors. The cryptocurrency continues to trade freely around the clock, while US-listed exchange-traded funds (ETFs) follow a traditional market calendar.

The result is that ETF holders may experience significant price gaps between Friday's close and Monday's opening bell. This can happen even on minor geopolitical news or economic developments that occur outside of regular trading hours.

For example, if a major event sends oil prices soaring on Saturday, Bitcoin's value may plummet across global exchanges. When the market reopens on Monday, the ETF price will need to reflect this new value, potentially resulting in a large opening gap.

The iShares Bitcoin Trust (IBIT), managed by BlackRock, held $47.67 billion in assets at the end of July and traded over 36 million shares that day. However, its median bid-ask spread was just 0.03%, indicating deep liquidity during regular trading hours.

Regulated derivatives, such as those offered by the CME Group, have helped to bridge the gap between ETF investors and Bitcoin's global schedule. These products allow professional investors to manage their crypto exposure outside of traditional market hours.