Bitcoin ETFs Garner $4.6 Billion Inflows as SEC Greenlights Trading for 11 Spot Funds
On January 10, the Securities and Exchange Commission (SEC) granted approval for trading 11 spot exchange-traded funds (ETFs) on equity markets. These ETFs are poised to attract fresh investments into Bitcoin, offering a novel gateway to cryptocurrency investment.
Participation from major asset managers and cryptocurrency firms enhanced the appeal of these offerings, resulting in a substantial $4.6 billion in combined volume across the approved ETFs. This influx signals a significant development in the crypto investment landscape.
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The following Bitcoin ETFs with their corresponding day-one volumes, exemplify the market response to this milestone:
- Grayscale Bitcoin Trust (GBTC): $2.09 billion
- iShares Bitcoin Trust by BlackRock (IBIT): $1.01 billion
- Fidelity Advantage Bitcoin (FBTC): $673 million
- ARK 21Shares (ARKB): $275 million
- Bitwise Bitcoin ETF (BITB): $120 million
- Franklin Bitcoin ETF (EZBC): $65.2 million
- Invesco Galaxy (BTCO): $44 million
- VanEck Bitcoin Trust (HODL): $24 million
- Valkyrie Bitcoin Fund (BRRR): $9 million
- WisdomTree Bitcoin Fund (BTCW): $6.4 million
- Hashdex Bitcoin Futures ETF (DEFI): $4.2 million
Grayscale, the world’s largest crypto asset manager, dominated day one with its GBTC ETF, leveraging its pre-existing presence in the market. BlackRock and ARK, prominent names in asset management and technology ETFs, also made significant contributions.
However, notable absentee Vanguard, a leading ETF provider. Cited Bitcoin’s high-risk nature as the reason for refraining from offering a spot Bitcoin product to its clients.
Despite the impressive volume, the ETFs and Bitcoin experienced a 5% to 6% decline on day one, possibly influenced by a sell-the-news dynamic following Bitcoin’s two-year high just before the approvals. Over 700,000 individual trades were executed, underscoring robust retail interest in these spot Bitcoin ETFs, almost double the activity seen in the leading NASDAQ ETF, QQQ.
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