In their first day of trading, spot Bitcoin exchange-traded funds (ETFs) in the United States saw $4.6 billion in trading volume as investors took advantage of these products that had so far been rejected by the SEC.
A total of 11 spot Bitcoin ETFs were approved yesterday in a historic move, with some being launched by major asset managers, including BlackRock’s iShares Bitcoin Trust, ARK 21 Shares Bitcoin ETF, and Grayscale’s conversion of its GBTC trust into an ETF.
Leading the pack in trading volumes were Grayscale, BlackRock, and Fidelity. Some industry players, however, aren’t embracing spot Bitcoin ETFs, with the largest provider of mutual funds Vanguard saying it had no plans to support Bitcoin ETFs.
The SEC’s green light for these ETFs comes after a history of rejections over concerns for investor protection. At the time of the approval, SEC Chair Gary Gensler said the regulator “did not approve or endorse Bitcoin,” and added investors “should remain cautious about the myriad risks associated with Bitcoin and products whose value is tied to crypto.”
The launch of these ETFs sparked a fierce battle among issuers to capture market share, leading some to significantly reduce their fees. These fees now range between 0.2% to 1.5%, with several firms offering temporary waivers or reductions.
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- Source: https://www.cryptocompare.com/email-updates/daily/2024/jan/12/
