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Bitcoin ETFs Make Historic Debut With $4.6B in Trading
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In a remarkable debut, the first U.S. ETFs offering direct exposure to the world’s largest cryptocurrency witnessed extraordinary trading volume, marking a significant milestone in the financial industry. About $4.6 billion was traded in new US spot Bitcoin ETFs on their first day of trading, per LSEG data. This underscores strong investor interest and the potential growth of cryptocurrency in mainstream investment platforms.
Grayscale Bitcoin Trust (GBTC - Free Report) , transitioning from a trust to an ETF, became the most heavily traded ETF on its debut, with $2.3 billion in trading volume. This was followed by about $1 billion in iShares Bitcoin Trust (IBIT) and $685 million in Fidelity Wise Origin Bitcoin Trust (FBTC). ARK 21Shares Bitcoin ETF (ARKB) and Bitwise Bitcoin ETF (BITB) saw more than $278 million and about $122 million, respectively, in trading volume on the day.
The astonishing volume surpasses the initial Bitcoin futures fund launched in 2021, which had almost $1 billion in turnover on its first day. The solid trading activity is likely to continue in the days ahead, leading to increased institutional and retail investor participation in the cryptocurrency market (read: A Glimpse Into 11 Spot Bitcoin ETFs Set for Launch Today).
This is because the launch of spot Bitcoin ETFs has made it easier for investors to gain exposure to Bitcoin without directly owning the asset. This development would not only legitimize Bitcoin in the eyes of mainstream investors but also provide a more accessible avenue for investment, thereby potentially attracting a fresh influx of capital into the crypto market. As such, spot ETFs are considered to be a game changer for cryptocurrency investors.
The approval for the 11 ETFs came after a long history of rejections by the SEC due to concerns about market manipulation, custody issues and the lack of investor protection. In fact, over the years, the SEC has denied more than 30 similar applications.
Let’s delve into the abovementioned ETFs in detail:
Grayscale Bitcoin Trust is the world’s largest Bitcoin ETF, charging 1.50% in annual fees. It owns and passively holds actual Bitcoins through the Custodian, Coinbase Custody.
iShares Bitcoin Trust (IBIT)
iShares Bitcoin Trust enables investors to access Bitcoin within a traditional brokerage account. It charges 25 bps in annual fees from investors. However, the fee is set to be 0.12% for the first 12 months or on the first $5 billion in assets (read: Bitcoin ETFs Are Almost Here: What Investors Should Know).
Fidelity Wise Origin Bitcoin Trust (FBTC)
Fidelity Wise Origin Bitcoin Trust offers exposure to the price of bitcoin — without buying bitcoin directly — in brokerage, trust, and tax-advantaged accounts. The entire fee of 0.25% has been waived until Jul 31, 2024.
ARK 21Shares Bitcoin ETF (ARKB)
ARK 21Shares Bitcoin ETF seeks to track the performance of bitcoin, as measured by the performance of the CME CF Bitcoin Reference Rate – New York Variant. It has an expense ratio of 0.21%, with the fee set to be 0% for the first six months or the first $1 billion in assets.
Bitwise Bitcoin ETF (BITB)
The Bitwise Bitcoin ETF has the lowest fees among the approved spot Bitcoin ETFs at 0.20%. The fee is set to be 0% for the first six months or the first $1 billion in assets.
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Bitcoin ETFs Make Historic Debut With $4.6B in Trading
In a remarkable debut, the first U.S. ETFs offering direct exposure to the world’s largest cryptocurrency witnessed extraordinary trading volume, marking a significant milestone in the financial industry. About $4.6 billion was traded in new US spot Bitcoin ETFs on their first day of trading, per LSEG data. This underscores strong investor interest and the potential growth of cryptocurrency in mainstream investment platforms.
Grayscale Bitcoin Trust (GBTC - Free Report) , transitioning from a trust to an ETF, became the most heavily traded ETF on its debut, with $2.3 billion in trading volume. This was followed by about $1 billion in iShares Bitcoin Trust (IBIT) and $685 million in Fidelity Wise Origin Bitcoin Trust (FBTC). ARK 21Shares Bitcoin ETF (ARKB) and Bitwise Bitcoin ETF (BITB) saw more than $278 million and about $122 million, respectively, in trading volume on the day.
The astonishing volume surpasses the initial Bitcoin futures fund launched in 2021, which had almost $1 billion in turnover on its first day. The solid trading activity is likely to continue in the days ahead, leading to increased institutional and retail investor participation in the cryptocurrency market (read: A Glimpse Into 11 Spot Bitcoin ETFs Set for Launch Today).
This is because the launch of spot Bitcoin ETFs has made it easier for investors to gain exposure to Bitcoin without directly owning the asset. This development would not only legitimize Bitcoin in the eyes of mainstream investors but also provide a more accessible avenue for investment, thereby potentially attracting a fresh influx of capital into the crypto market. As such, spot ETFs are considered to be a game changer for cryptocurrency investors.
The approval for the 11 ETFs came after a long history of rejections by the SEC due to concerns about market manipulation, custody issues and the lack of investor protection. In fact, over the years, the SEC has denied more than 30 similar applications.
Let’s delve into the abovementioned ETFs in detail:
Grayscale Bitcoin Trust (GBTC - Free Report)
Grayscale Bitcoin Trust is the world’s largest Bitcoin ETF, charging 1.50% in annual fees. It owns and passively holds actual Bitcoins through the Custodian, Coinbase Custody.
iShares Bitcoin Trust (IBIT)
iShares Bitcoin Trust enables investors to access Bitcoin within a traditional brokerage account. It charges 25 bps in annual fees from investors. However, the fee is set to be 0.12% for the first 12 months or on the first $5 billion in assets (read: Bitcoin ETFs Are Almost Here: What Investors Should Know).
Fidelity Wise Origin Bitcoin Trust (FBTC)
Fidelity Wise Origin Bitcoin Trust offers exposure to the price of bitcoin — without buying bitcoin directly — in brokerage, trust, and tax-advantaged accounts. The entire fee of 0.25% has been waived until Jul 31, 2024.
ARK 21Shares Bitcoin ETF (ARKB)
ARK 21Shares Bitcoin ETF seeks to track the performance of bitcoin, as measured by the performance of the CME CF Bitcoin Reference Rate – New York Variant. It has an expense ratio of 0.21%, with the fee set to be 0% for the first six months or the first $1 billion in assets.
Bitwise Bitcoin ETF (BITB)
The Bitwise Bitcoin ETF has the lowest fees among the approved spot Bitcoin ETFs at 0.20%. The fee is set to be 0% for the first six months or the first $1 billion in assets.