The arrival of spot Bitcoin ETFs to the traditional market left an indelible mark on the financial landscape, in which the instruments of BlackRock, Grayscale and Fidelity stood out, leading in total volume.
On the exciting and highly anticipated first day of trading for a series of new spot Bitcoin exchange-traded funds (ETFs), the market witnessed an extraordinary total trading volume that exceeded US$4.5 billion.
This milestone exposes the fervor and market demand for financial products linked to the largest cryptocurrency by market capitalization, the Bitcoin. Although the increases that she presented Ethereumcould indicate that it is the next currency to enter the traditional market, according to some traders and analysts of the crypto ecosystem.
One of the prominent players in this scenario was the F Bitcoin ETF.idelity, FBTC, which left a significant mark by registering around US$685 million in trading volume on its first day. However, the spotlight went to the Bitcoin ETF of Grayscale, operating under the symbol GBTC, reaching US$2.2 billion in total volume. This investment vehicle is the conversion of your successful Grayscale Bitcoin Trustestablishing himself as one of the leaders of the day.
ETF: some caveats to keep in mind
However, not all issuers managed to debut as expected. Hashdex, despite having obtained SEC approval for its BTC spot ETF, was prevented from joining the Bitcoin spot ETF pool on opening day. Although the 19b-4 filing was approved, the lack of effectiveness in the S-1 form means that its “DEFI” fund still trades as a futures-based ETF, without holding spot bitcoin in its portfolio.
It is essential to note that the reported trading volume includes deposits and withdrawals, providing a partial snapshot of trading activity, without fully revealing the ratio between purchases and sales.
According to Bloomberg Senior ETF Analyst Eric Balchunas, there is a theory that the vast majority of trading activity for GBTC was selling, as investors migrated toward newer, lower-fee products.
The ProShares Futures Bitcoin ETF (BITO) also experienced a record day with over $2 billion in total volume. It is speculated that this activity was mostly comprised of selling, as investors shifted from futures-based bitcoin exposure to cheaper, less volatile spot-price-based exposure.
Despite the shocking numbers, it is important to note that yesterday’s volume, while representative of significant demand, has had minimal impact on market liquidity, according to Bloomberg.
In short, the unprecedented day in the history of Bitcoin ETFs left an indelible mark on the financial landscape, with the BlackRock, Grayscale and Fidelity ETFs leading in total volume.
However, an issuer’s delay underscores the challenges and complexities associated with these products entering the market. The full impact of these events will only be revealed in the coming days when deposits in the spot market are analyzed.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
