Following the landmark approval by the US SEC, the first day of trading for eleven spot bitcoin ETFs saw a substantial volume of $4.6 billion.
Key Takeaways
- Eleven spot bitcoin ETFs, including offerings from BlackRock, Grayscale, and Fidelity, began trading in the US following SEC approval.
- The first day of trading recorded a substantial volume of $4.6 billion, with notable dominance from Grayscale, BlackRock, and Fidelity.
- The SEC’s approval is considered a watershed moment for the cryptocurrency industry, testing broader acceptance of digital assets as investments.
- Despite regulatory approval, some industry executives, including Vanguard, express caution about bitcoin as a high-risk and speculative asset.
Bitcoin ETF Trading Surpasses $4.6 Billion
US-listed bitcoin exchange-traded funds (ETFs) experienced a significant surge in trading activity, with a total volume of $4.6 billion on the first day of trading following the landmark approval by the US Securities and Exchange Commission (SEC).
Eleven spot bitcoin ETFs, featuring prominent names such as BlackRock’s iShares Bitcoin Trust, Grayscale Bitcoin Trust, and ARK 21Shares Bitcoin ETF, entered the market, initiating a fierce competition for market share among issuers.
Grayscale, BlackRock, and Fidelity emerged as dominant players, showcasing robust trading volumes, according to data from the London Stock Exchange Group (LSEG).
Read More: US SEC Gives Approval to Bitcoin ETFs!
Industry Executives’ Caution
While the SEC’s approval signifies a major stride for digital assets, some industry executives remain cautious about bitcoin’s perceived risks. Vanguard, the largest provider of mutual funds, announced it has no plans to offer the new batch of spot bitcoin ETFs on its platform due to concerns about the high-risk nature of bitcoin investments.
[SCMP] US #bitcoin ETF trades soar to US$4.6 billion on first day after landmark SEC approval
— BecauseBitcoin.com (@BecauseBitcoin) January 12, 2024
Market Impact and Continued Competition
The launch of these ETFs had an immediate impact on bitcoin’s price, propelling it to its highest level since December 2021. Bitcoin was last reported at $46,303, marking a 0.77 percent increase, while the second-largest cryptocurrency, ether, rose by 2.79 percent to $2597.95.
The competition for market share among issuers has led to a range of fees for the new bitcoin ETFs, varying from 0.2 percent to 1.5 percent.
To Conclude
The first day of trading for US-listed spot bitcoin ETFs, following SEC approval, witnessed a substantial volume of $4.6 billion, signaling a watershed moment for the cryptocurrency industry.
Dominated by major players like Grayscale, BlackRock, and Fidelity, this development underscores the industry’s efforts to test the broader acceptance of digital assets as viable investment options.
