Investments in Bitcoin ETFs reach $4.6B on first day of trading
Investments in Bitcoin ETFs reach $4.6B on first day of trading
London Stock Exchange Group (LSEG), a financial data provider, reported that US-listed Bitcoin exchange-traded funds (ETFs) saw $4.6 billion worth of shares traded on their first day of trading following SEC approval.
Eleven spot Bitcoin ETFs were listed in the U.S. cryptocurrency market on January 11, including BlackRock's iShares Bitcoin Trust, Grayscale Bitcoin Trust, and ARK/21Shares Bitcoin ETF. LSEG's research found that the Grayscale, BlackRock, and Fidelity products were the most sought-after by investors.
Todd Rosenbluth, Head of Research at VettaFi, said trading volumes were relatively high for the new ETF products. However, he cautioned that this is a long-term event that goes beyond overnight trading.
Although the SEC's approval of the spot Bitcoin ETFs is a landmark event for the crypto industry and will lead to an influx of new investments into the cryptocurrency market, some companies have opposed the launch of the product, Reuters reported.
Vanguard, one of the "big three" US investment firms and the largest mutual fund provider, said it does not intend to offer clients access to spot Bitcoin ETFs on its platform.
Gary Gensler, Chairman of the SEC, admitted that he was reluctant to approve spot Bitcoin ETF funds.
"Investors should remain cautious about the many risks associated with Bitcoin and products whose value is tied to the cryptocurrency," he said in a statement.
Some analysts expect inflows to gradually increase, topping $10 billion in 2024. Meanwhile, some say the ETFs could attract between $50 billion and $100 billion this year alone.
Since Bitcoin ETFs began trading, investors have been tracking bid-ask spreads (the difference between the lowest price asked for an asset and the highest bid), as ETFs with narrower spreads are in greater demand.
Invesco's Jason Stoneberg believes that trading volume, internal organization and the number of participants are important factors in achieving good spreads.
It's worth noting that some market participants say that expectations of approval may be greatly exaggerated, as the broader investment community still views cryptocurrencies as risky.
Related: Vanguard clients leave the company due to blocked access to Bitcoin ETFs
