Markets News Report
January 12, 2024

Spot Bitcoin ETFs Debut with Strong $4 Billion Trading Day, BlackRock Takes the Lead

Spot Bitcoin ETFs Debut with Strong $4 Billion Trading Day, BlackRock Leads Among New Entrants

Market for the recently approved spot Bitcoin ETFs, managed by asset management companies including Grayscale, BlackRock, and Fidelity among others, experienced a strong first trading day on Thursday, with trading volumes surpassing $4 billion.

This comes after the US Securities and Exchange Commission’s (SEC) landmark approval of the new cryptocurrency-based financial instruments earlier this week.

On the initial trading day, BlackRock appeared to be the prominent player. The financial institute’s fund recorded trading volume slightly over $1 billion, establishing itself as the leading performer among the newly introduced Bitcoin funds. Fidelity secured the second position, with the second-best performing ETF among the new cryptocurrency-based funds — accumulating $685 million in trading.

Likewise, spot Bitcoin ETFs from ARK 21Shares and Bitwise also generated significant trading; recording $278 million and $122 million, respectively.

ETFs with the lowest performance on Thursday were those provided by Valkyrie, WisdomTree, and Hashdex, each accumulating less than $10 million in volume during the initial hours of trading. It’s noteworthy that Grayscale’s spot Bitcoin ETF differs from the other 10 active ETFs, as it represents a conversion of its flagship GBTC fund.

Bloomberg’s Senior ETF Analyst, Eric Balchunas, suggested earlier in the day that the majority of Grayscale’s volume was likely attributed to “selling.” In contrast, trading volumes for BlackRock and Fidelity’s funds were likely driven predominantly by an influx of fresh capital, given that these instruments are entirely new.

Additionally, Balchunas shared a chart on X (formerly Twitter), showing BlackRock’s spot Bitcoin ETF as one of the top 25 day-one performers in ETF history.

SEC Approves 11 Spot Bitcoin ETFs in Pivotal Moment for Crypto

In a development considered a “watershed moment” by the global crypto ecosystem, the SEC granted approval to 11 spot Bitcoin ETFs yesterday. A widespread anticipation raised around the performance of these funds in the first 24 to 48 hours of trading.

Standard Chartered Bank recently projected that the newly introduced spot Bitcoin ETFs could attract between $50 billion to $100 billion in 2024.

Meanwhile, Bitcoin’s price experienced moderate gains, following a more substantial increase earlier in the day. The world’s largest cryptocurrency by market capitalization was traded at $46,800, reflecting a 1.3% increase over the past 24 hours.

Nevertheless, the significant approval faced criticism from some of the US regulators.

Shortly after the approval, US SEC Commissioner Mark Uyeda expressed concerns about the imperfect reasoning in the approval order for the spot Bitcoin ETF. Moreover, he released a statement outlining three aspects highlighting potential drawbacks of the SEC decision and suggesting potential repercussions it may cause over the coming years.

Recently, a member of the Senate Banking Committee — Senator Elizabeth Warren, who traditionally held a skeptical view of cryptocurrencies, criticized the SEC for approving spot Bitcoin ETFs. She called for urgent application of anti-money laundering rules to the cryptocurrency sector.

As the cryptocurrency sector navigates this landmark decision, the anticipation of the ETFs’ performance and the potential impact on the market continues to unfold.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at [email protected]

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Alisa Davidson
Alisa Davidson

Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at [email protected]

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