Bitwise’s spot Bitcoin exchange-traded fund (ETF) took the lead on its debut trading day by attracting a staggering $240 million in inflows. This success positioned Bitwise at the forefront among the 11 spot Bitcoin ETFs recently approved by the US Securities and Exchange Commission (SEC), including offerings from industry giants like BlackRock’s iShares Bitcoin Trust, Grayscale Bitcoin Trust, and ARK 21Shares Bitcoin ETF.
What were the initial inflows?
After a decade-long struggle between the regulatory body and the digital asset industry, the SEC approved these Bitcoin ETFs, including offerings from financial giants like BlackRock’s iShares Bitcoin Trust and Grayscale Bitcoin Trust.
On the inaugural trading day, the entire market witnessed a total trading activity of $4.6 billion, encompassing both inflows and outflows, according to LSEG data. While Reuters couldn’t immediately verify Bitwise’s data, Grayscale, BlackRock, and Fidelity reportedly dominated total trading. Marking a significant development for the broader acceptance of digital assets as investments, considering the perceived risks associated cryptos among financial professionals.
The initial days of trading are closely monitored by the market to gauge inflows, and Matt Hougan, Chief Investment Officer at Bitwise, expressed optimism, saying, “We think that this will become a market measured in the tens of billions of dollars.” The success story of Bitwise’s Bitcoin ETF follows in the footsteps of the ProShares Bitcoin Strategy ETF, the SEC’s first-approved Bitcoin futures ETF in 2021, which attracted $1 billion in assets within its initial days of trading.
World’s largest BTC ETF
Grayscale, having received approval to convert its existing Bitcoin trust into an ETF, instantly claimed the title of the world’s largest Bitcoin ETF with over $28.6 billion in assets under management. Despite this achievement, the product experienced outflows of $95 million on the debut day. SEC Chair Gary Gensler clarified that the approvals did not endorse Bitcoin, emphasizing its speculative and volatile nature.
The regulatory green light triggered intense competition among issuers for market share. Franklin Templeton responded by reducing the fee for its Bitcoin ETF to 0.19 per cent, the lowest in the market, and waiving fees on the first $10 billion in assets under management until August.
Valkyrie, after the debut of its ETF, swiftly followed suit by cutting its fees to 0.25 per cent. The Valkyrie Bitcoin ETF reported $29.44 million in inflows on its first day of trading, according to the company.
Despite the overwhelming success of Bitcoin ETFs on their debut day, it’s worth noting that the price of Bitcoin, the world’s largest cryptocurrency, experienced a 6.11% decline, reaching $43,149 at the time of this report.