First day of newly minted spot Bitcoin ETF It's in the books and it did not disappoint.
The freshman BTC fund cleared $4.5 billion worth of trading volume and achieved several outstanding milestones.
If that sounds like a big number, that's because it is. Despite the uproar, market players across the board did not expect such a big debut. “Just reaching $500 million in first-day inflows is a remarkable challenge,” said Adam Glenn, co-founder of crypto hedge fund Hunting Hill Digital. Decryption During October.
The appetite for Bitcoin by Wall Street investors has increased by allowing them to gain exposure to BTC without directly custodial or holding the asset, an option they have been denied by the SEC for more than a decade. However, it seems that it has always existed.
BlackRock's iShares Bitcoin Trust, which trades on the Nasdaq under the ticker IBIT, has nearly cleared $1 billion worth of trading volume on its own. As of Thursday, it accounted for 22% of the total volume of all 10 Bitcoin Spot ETFs. (Yes, that's 10, not 11. More on that later.)
Despite a strong morning, BlackRock's IBIT fell 4.6% from its opening price to close the day at $26.62. The fund got off to a hot start with 3 million shares moving before the market opened, but lost momentum as the day went on.
It's worth pointing out that BlackRock, which trades a catalog of ETFs under the iShares brand, has often made big debuts in exchange-traded funds.
The list of newly traded spot BTC funds changed during the day, losing one of its participants.among them announcement Regarding yesterday's Bitcoin ETF approval, the Securities and Exchange Commission added the HashDex Bitcoin ETF to its list. However, Hashdex made its own announcement this afternoon to clear up any confusion.
Hashdex has received permission from the SEC to convert the Hashdex Bitcoin Futures ETF, which trades on the NYSE under the DEFI ticker, into a spot BTC fund. A rule change similar to the one that allowed GBTC to be traded as a spot Bitcoin ETF. However, Hashdex has not yet fully implemented this change.
“This fund, which is currently a futures product, does not currently hold any spot Bitcoin in its portfolio,” the company said in a press release. “At a later date, the fund plans to change its name and change its investment strategy to include spot Bitcoin in its portfolio.”
The company added that the registration statement making this change final is still under review by the SEC. Once that is complete, the total list of U.S.-traded Bitcoin ETFs will be back to 11.
And while most of the attention today was focused on BlackRock, crypto-native digital asset management company Grayscale recorded an impressive milestone of its own.Company's Grayscale Bitcoin Trust hit a record high daily trading volume of 56 million shares on Thursday. This is an odd fund in the Bitcoin ETF lineup, as it started life as a Bitcoin investment product for accredited investors and is already 10 years old.
Today's GBTC volume significantly exceeded the next highest volume of 40 million shares on May 25, 2017.
The views and opinions expressed by the authors are for informational purposes only and do not constitute financial, investment, or other advice.
