Thin Weekend Liquidity Turns Minor Geopolitics into Monday Price Gaps

The convenience of owning Bitcoin through a brokerage account has created an uneven trade-off for investors. On one hand, it allows access to the cryptocurrency without requiring private key management or direct custody. However, this ease of use comes with a traditional market calendar, which can lead to significant price gaps when markets reopen after a weekend.

BlackRock's iShares Bitcoin Trust (IBIT) held $47.67 billion in assets at the end of July and traded over 36 million shares on July 30, with a median bid-ask spread of 0.03%. However, while US-listed ETFs like IBIT have become enormous, trading outside normal business hours can be thin.

Bitcoin continues to trade 24/7 through exchanges such as Coinbase and Binance, alongside institutional desks and derivatives markets. This means that any major geopolitical event or surprise announcement during the weekend can lead to significant price movements in Bitcoin, which are then reflected in the ETF's share price when trading resumes.