The Market for Spot Bitcoin ETF Sees Strong First Day of Trading
The newly approved spot bitcoin ETF has had a successful first day of trading, with volumes surpassing $4 billion. The SEC recently approved crypto-based financial instruments from asset managers like Grayscale, BlackRock, and Fidelity. As of 3:02 p.m. ET, Grayscale’s converted ETF leads the way with over $1.9 billion in trading volume, followed by BlackRock and Fidelity with $942 million and $628 million, respectively.
Grayscale’s Volume Likely Consists of Selling
Bloomberg’s Senior ETF Analyst Eric Balchunas speculates that most of Grayscale’s volume is likely “all selling.” On the other hand, the trading volumes for BlackRock and Fidelity’s funds are probably due to an inflow of fresh capital as the instruments are new.
Lower Performing ETFs on First Day of Trading
The lowest performing ETFs on the first day of trading are offered by Valkyrie, WisdomTree, and Hashdex, each accumulating less than $10 million in volume during the initial hours.
Bitcoin Price Sees Modest Gains
Bitcoin’s price experienced modest gains throughout the day, trading at $46,851 at 3:05 p.m. ET, reflecting a 1.3% increase over the past 24 hours.
ETFs a ‘Watershed Moment’ for Crypto
The SEC’s approval of the 11 spot bitcoin ETFs has been hailed as a “watershed moment” for crypto organizations and enthusiasts. Standard Chartered Bank predicts that these new ETFs could bring in $50 billion to $100 billion in 2024. Financial advisors now need to have an opinion on this asset class, potentially leading to a steady flow of interest in the crypto market.
Vanguard Refuses to Allow Clients to Buy ETFs
Vanguard announced that it will not permit its clients to purchase the newly approved ETFs due to their highly speculative and unregulated nature. Some users have decided to transfer their investment accounts from Vanguard to Fidelity as a result.
“Establishment Folks” Underestimate Bitcoin Ownership
Ava Labs founder and CEO commented that “establishment folks” underestimate the extent of Bitcoin and crypto ownership in the US, leading to blunders like Vanguard’s refusal to offer ETFs. This new asset class is here to stay.
Hot Take: The Future of Crypto ETFs
The successful launch of spot bitcoin ETFs marks a significant milestone for the crypto industry. With billions of dollars in trading volume on the first day, it’s clear that there is strong demand for these financial instruments. While some institutions like Vanguard remain cautious, others see this as an opportunity for steady growth and increased interest in cryptocurrencies. As more investors gain access to regulated crypto products, we can expect further developments and innovations in the ETF space. This is just the beginning of a new era for crypto investments.
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