Spot Bitcoin ETFs Trading Volume Exceeded $4.6B In The First Day

Key Points:

• U.S. Bitcoin ETFs witnessed an unprecedented $4.5 billion in spot Bitcoin ETFs trading volume, with over $4.6 billion changing hands on Thursday.
• Grayscale, BlackRock, and Fidelity took the lead, with Grayscale Bitcoin Trust and BlackRock’s iShares Bitcoin Trust accounting for major volumes.

According to Bloomberg, U.S.-listed Bitcoin exchange-traded funds (ETFs) have witnessed a staggering $4.6 billion in share trading, following approval by the U.S. securities regulator on Wednesday.

Spot Bitcoin ETFs Trading Volume Hits $4.6 Billion in Record Trades

The spot Bitcoin ETFs trading frenzy continued, with over $4.6 billion changing hands on Thursday across nearly a dozen U.S. spot Bitcoin ETFs. Notably, Grayscale, BlackRock, and Fidelity emerged as the dominant players, with the Grayscale Bitcoin Trust now transformed into an ETF, registering a substantial $2.3 billion in volume. Simultaneously, BlackRock’s iShares Bitcoin Trust (IBIT) witnessed over $1 billion in transactions.

This development marks a pivotal moment for the cryptocurrency industry, testing the broader acceptance of digital assets as investments, especially given their perceived risk by many professionals. Eleven spot Bitcoin ETFs, including BlackRock’s IBIT, Grayscale’s GBTC, and ARK 21Shares Bitcoin ETF, initiated trading on Thursday, triggering intense competition for market share.

Unprecedented in ETF history, this simultaneous launch of more than 10 nearly identical funds added to the complexity. Some industry executives cautioned against Bitcoin’s high-risk nature, and Vanguard, the largest mutual fund provider, declared it had no immediate plans to offer the new batch of spot Bitcoin ETFs trading to its brokerage clients.

The regulatory approval ignited fierce competition among issuers, prompting some to slash fees well below the industry standard even before the launch. Fees for the new Bitcoin ETFs range from 0.2% to 1.5%, with several firms waiving fees entirely for an initial period or a specified volume of assets. Valkyrie, for instance, further reduced its fees to 0.25% and waived them for the first three months after its ETF began trading.