Spot Bitcoin ETFs See High Trading Volume on First Day
The trading volume of spot Bitcoin ETFs exceeded $4.5 billion on its first day, following the recent approval by the United States Securities and Exchange Commission (SEC). In the first hour alone, transactions for the new ETF reached $1.74 billion. Eleven asset management companies, including BlackRock and Fidelity, prepared their ETFs for immediate trading after approval. The trading volume for these products has exceeded Bloomberg’s forecasts of $4 billion. The introduction of investment vehicles supported by prestigious asset management companies has attracted new investors to the sector, leading to an overall increase in Bitcoin trading volume by almost 10% in the last 24 hours.
Vanguard Chooses Not to Enter Bitcoin ETF Market
Vanguard, with assets worth $7.7 trillion, has announced that it will not enter the market of spot Bitcoin ETFs and is actively preventing its customers from participating in trading the newly approved Bitcoin ETFs. Before approval, Vanguard had already stated its cautious stance towards cryptocurrencies and the weak investment case for digital assets. This decision contradicts the trend of other asset management companies that have embraced Bitcoin ETFs. Vanguard justifies its choice by emphasizing the lack of intrinsic economic value in cryptocurrencies and their high volatility, which do not align with its objective of generating long-term positive returns.
Grayscale’s GBTC Becomes First Approved Spot Bitcoin ETF
Grayscale’s Bitcoin Trust (GBTC) has become the first spot Bitcoin ETF to receive approval to enter the market. GBTC, valued at $27 billion, started pre-market trading at $40,496 on NYSE Arca. Grayscale charges investors a higher commission compared to its competitors at 1.5%. This approval from the SEC is a historic milestone for the cryptocurrency industry. Grayscale’s significant assets give it a competitive advantage in the industry, despite the higher commission fees. GBTC’s transformation into an ETF represents a major development in the crypto market.
Hot Take: Spot Bitcoin ETFs Gain Significant Trading Volume on First Day
The approval of spot Bitcoin ETFs by the SEC has led to a surge in trading volume, exceeding $4.5 billion on the first day. This milestone has attracted new investors to the sector and contributed to a 10% increase in overall Bitcoin trading volume. While many asset management companies have embraced Bitcoin ETFs, Vanguard stands out for its cautious approach and decision not to enter the market. On the other hand, Grayscale’s GBTC has become the first approved spot Bitcoin ETF, enjoying a competitive position despite higher commission fees. The approval of these ETFs marks a significant development in the cryptocurrency industry.
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