[01/16/24] Spot Bitcoin ETF Trading Hits $4.7 Billion on First Day

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WEEKLY ROUNDUP OF ETF FILINGS, LAUNCHES & CLOSURES

The total surpassed analysts’ predictions of $4 billion in first-day volume and the nearly $1 billion that ProShares Bitcoin Strategy ETF (BITO), the first bitcoin ETF, attracted in its 2021 debut. That fund traded bitcoin futures.

The heavy trading followed less than 24 hours after the Securities and Exchange Commission (SEC) ended roughly a decade of rejections of the ETFs based primarily on the price of bitcoin, approving 11 applications in a late Wednesday afternoon flurry, including filings by Fidelity, Franklin Templeton and BlackRock. The SEC also approved Grayscale Investments’ application to convert its bitcoin trust into an ETF.

BlackRock’s application in June had rekindled institutional investors’ interest in the space and a Grayscale court victory against the SEC in a Federal court raised investor optimism about approval.

On day one of trading, the Bitwise Bitcoin ETF (BITB) generated $237.9 million of inflows, the most among the issuers. Bitwise offered the second lowest fee, 20 basis points, just behind Franklin’s 0.19%. Fidelity Wise Origin Bitcoin Fund and iShares Bitcoin Trust ranked second and third, respectively, with $226.9 million and $111.6 million, respectively.

“Congrats to $BITB for winning Day One of the Cointucky Derby w/ $238m in flows,” quipped Bloomberg ETF analyst Eric Balchunas in a tweet on X/Twitter.

By James Rubin

Below is a roundup of the key developments in the ETF industry during the week ending Jan. 12, 2024:

Investors Pour $4.7B into Spot Bitcoin ETFs on First Day Investors embraced the new funds even as crypto price slips.

Grayscale Files for First Covered Call Spot Bitcoin ETF? The fund would offer actively managed exposure to GBTC.

Vanguard, Other Firms Refuse to Trade Spot Bitcoin ETFs Schwab, Robinhood embrace new funds that some see as new and risky.

Spot Bitcoin ETF Performance Outlook for 2024 Bitcoin price history provides clues about how spot bitcoin ETFs may perform.

T-Rex Pushes Single-Stock ETFs to New Levels The latest flight of 2-times levered ETFs features, Apple, Alphabet and Microsoft.

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