Spot Bitcoin ETFs Record $4.5B in First-Day Trading Volume
On the first day of trading, a suite of new Bitcoin exchange-traded funds (ETFs) saw an impressive start, with total trading volume surpassing $4.5 billion. The top performers among the newly-listed funds were BlackRock, Grayscale, and Fidelity’s ETFs. However, one issuer did not make it to the trading floor as expected.
BlackRock’s iShares Bitcoin Trust Leads Spot ETFs with $1B in Volume
BlackRock’s Bitcoin ETF, the iShares Bitcoin Trust (IBIT), stood out as the top performer among the newly-listed funds. It managed to handle just over $1 billion in volume, representing 22% of the total trading volume of the group. The success of IBIT on its first day of trading showcases the significant interest in Bitcoin investments.
Fidelity’s Spot Bitcoin ETF Gains $685M in Day One Trading
Following closely behind BlackRock’s IBIT, Fidelity’s spot Bitcoin ETF, known as FBTC, witnessed an impressive trading volume of $685 million. Fidelity’s strong debut in the Bitcoin ETF market indicates that investors are eager to explore various investment options for Bitcoin.
Grayscale’s Bitcoin ETF Registers $2.2B in Total Volume
Grayscale, a well-known name in the cryptocurrency investment space, entered the ETF market with its Bitcoin ETF, trading under the ticker GBTC. GBTC recorded a staggering $2.2 billion in total trading volume on its first day. The conversion of Grayscale’s pre-existing Bitcoin Trust into an ETF has attracted substantial market interest.
Hashdex Misses Spot Bitcoin ETF Launch, Still Only Futures-Based
While the majority of issuers saw success, Hashdex missed the opportunity to be counted among the spot Bitcoin ETFs on the first day. Although the Securities and Exchange Commission (SEC) approved Hashdex’s spot ETF product filing, the S-1 form was not made effective, preventing the fund from launching as a spot ETF. Hashdex’s “DEFI” fund continues to trade as a futures-based ETF until further developments.
It is worth noting that trading volume reflects both inflows and outflows and does not provide a complete picture of buying versus selling activity. However, senior Bloomberg ETF analyst Eric Balchunas suggested that most of the trading activity in GBTC and potentially BITO (ProShares Futures Bitcoin ETF) was selling, as investors rotated out of these funds into newer, lower-fee products such as BlackRock’s and Fidelity’s respective ETFs. Further analysis of spot inflows will provide a clearer understanding of the impact of these ETFs on the underlying Bitcoin market.
Analyst comment
Positive news: Spot Bitcoin ETFs record $4.5B in first-day trading volume, with top performers being BlackRock, Grayscale, and Fidelity’s ETFs. BlackRock’s iShares Bitcoin Trust leads with $1B in volume. Fidelity’s spot Bitcoin ETF gains $685M and Grayscale’s Bitcoin ETF registers $2.2B in total volume. However, Hashdex misses spot ETF launch. Analyst expects continued market interest and potential rotation of funds into newer, lower-fee products. Further analysis of spot inflows will provide a clearer understanding of the impact on the Bitcoin market.
