Crypto Asset Manager Bitwise Sees $240 Million Inflows for Bitcoin ETF
Crypto asset manager Bitwise announced that its spot bitcoin exchange-traded fund (ETF) received $240 million in inflows, making it the most popular among the 10 similar products launched recently. This comes after the U.S. Securities and Exchange Commission (SEC) approved 11 spot bitcoin ETFs, including those from BlackRock, Grayscale, and ARK 21Shares. On the first day of trading, a total of $4.6 billion worth of shares were traded across all the products, with Grayscale, BlackRock, and Fidelity dominating the market activity.
A Watershed Moment for the Cryptocurrency Industry
The approval of these ETFs marks a significant milestone for the cryptocurrency industry. It will test whether digital assets can gain broader acceptance as an investment. Market observers are closely watching the inflows during the initial days of trading to gauge their success. Bitwise’s Chief Investment Officer, Matt Hougan, believes that this market has the potential to grow into tens of billions of dollars.
ProShares Bitcoin Strategy ETF’s Successful Start
The ProShares Bitcoin Strategy ETF, which was approved by the SEC in 2021 as the first bitcoin futures ETF, accumulated $1 billion in assets within its early days of trading. Anthony Rousseau, Head of Brokerage Solutions at TradeStation, sees this as a significant achievement given the current state of the market cycle.
Grayscale Becomes World’s Largest Bitcoin ETF
Grayscale received approval to convert its existing bitcoin trust into an ETF, instantly becoming the world’s largest bitcoin ETF with over $28.6 billion in assets under management. However, on its first day of trading, it experienced outflows of $95 million. The SEC’s approval does not signify an endorsement of bitcoin, according to SEC Chair Gary Gensler, who called it a “speculative, volatile asset.”
Intense Competition and Fee Reductions
The regulatory approval has sparked intense competition among the issuers. Franklin Templeton reduced the fee for its bitcoin ETF to 0.19%, the lowest in the market, and waived fees on the first $10 billion in assets under management until August. Valkyrie also slashed its fees to 0.25% after its ETF started trading. The Valkyrie Bitcoin ETF saw $29.44 million inflows on its first day of trading.
Hot Take: Cryptocurrency Market Volatility Persists
The price of bitcoin, the largest cryptocurrency, experienced a 5.32% decrease and was valued at $43,696 at the time of writing. Despite the regulatory approvals and increasing interest in bitcoin ETFs, the cryptocurrency market remains highly volatile.
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