Spot Bitcoin ETFs Make a Strong Debut with $4.5 Billion Volume
The new spot Bitcoin ETFs had an impressive start on Wall Street, generating a combined trading volume of $4.5 billion on their first day. This exceeded expectations and highlighted the strong demand for Bitcoin among traditional investors who prefer ETF shares over direct BTC ownership.
BlackRock’s iShares Bitcoin Trust Leads the Way
BlackRock’s iShares Bitcoin Trust, traded as IBIT on Nasdaq, played a significant role, accounting for approximately $1 billion in trading volume and representing 22% of the total volume across all spot Bitcoin products. However, IBIT closed the day down 4.6% at a price of $26.62.
Hashdex Bitcoin ETF Misses the Debut
Hashdex, which did not file its S-1 form before the launch date, was absent from the list of trading spot Bitcoin funds. Although initially approved by the SEC, Hashdex clarified that the permission was for converting its Hashdex Bitcoin Futures ETF into a spot Bitcoin ETF, pending SEC review. This would bring the total number of spot BTC ETFs trading on US exchanges to 11.
Milestone for Grayscale
Grayscale, a crypto-native firm in asset management, also achieved success with its Grayscale Bitcoin Trust (GBTC). On the debut day, GBTC recorded an all-time high daily volume of 56 million shares. GBTC stands out as an existing Bitcoin investment product for accredited investors.
Community Opinions Vary
Opinions within the crypto community differ regarding the success of the ETF launch. One member argued that it was “terribly unsuccessful” due to outflows from GBTC comprising 50% of the sector’s trading volume. However, Bloomberg Intelligence’s senior ETF analyst, Eric Balchunas, called the launch a “TERRIBLY HUGE SUCCESS” based on metrics such as volume, number of trades, flows, and media coverage.
Hot Take: Spot Bitcoin ETFs Make History with $4.5 Billion Debut
The debut of spot Bitcoin ETFs on Wall Street exceeded expectations and showcased the strong demand for Bitcoin among traditional investors. With a combined trading volume of $4.5 billion on the first day, these ETFs proved to be a groundbreaking development for the number one cryptocurrency. BlackRock’s iShares Bitcoin Trust led the way with significant trading volume, while Grayscale also achieved a milestone with its Grayscale Bitcoin Trust. Opinions within the community varied, but overall, the launch was considered a tremendous success. This marks a significant step forward for Bitcoin and its adoption in traditional financial markets.
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