Bitwise, the crypto asset manager, reported an impressive influx of $240 million into its spot bitcoin exchange-traded fund (ETF) on Friday, surpassing the other 10 similar products that debuted for trading just the day before.
This significant achievement comes after a decade-long struggle between the U.S. Securities and Exchange Commission (SEC) and the digital asset industry, resulting in the approval of 11 spot bitcoin ETFs this week.
Notable names in the list include BlackRock’s iShares Bitcoin Trust (IBIT.O), Grayscale Bitcoin Trust (GBTC.P), and ARK 21Shares Bitcoin ETF (ARKB.Z).
The first day of trading witnessed a staggering $4.6 billion in shares trading hands across all these products, as reported by LSEG data tracking total trading activity.
Reuters, however, could not immediately confirm Bitwise’s specific figures. LSEG data highlighted that Grayscale, BlackRock, and Fidelity dominated the total trading volume on Thursday.
This development marks a pivotal moment for the cryptocurrency industry, signaling a test of whether digital assets, previously deemed risky by many professionals, can gain broader acceptance as investments.
All eyes are on the inflows during the initial days of trading. Bitwise’s Chief Investment Officer, Matt Hougan, expressed optimism, stating, “We think that this will become a market measured in the tens of billions of dollars.”
Comparing this performance to the ProShares Bitcoin Strategy ETF (BITO.P), the first bitcoin futures ETF approved by the SEC in 2021, which accumulated $1 billion in assets within its initial days of trading, it’s evident that this could be a significant success, considering the current market conditions, notes Anthony Rousseau, head of brokerage solutions at TradeStation.
Grayscale’s transformation of its existing bitcoin trust into an ETF overnight made it the world’s largest bitcoin ETF, with over $28.6 billion in assets under management.
Interestingly, it faced outflows of $95 million on Thursday, as reported by an inside source.
SEC Chair Gary Gensler, while granting approvals, made it clear that they weren’t an endorsement of bitcoin, describing it as a “speculative, volatile asset.”
Nonetheless, the green light from regulators has ignited fierce competition among issuers.
Franklin Templeton reacted by lowering the fee for its bitcoin ETF to an industry-low of 0.19% and waived fees entirely on the product’s initial $10 billion in assets under management until August.
Valkyrie, after launching its ETF on Thursday, also reduced its fees to 0.25% and claimed $29.44 million flowed in during the first trading day.
Leah Wald, CEO of Valkyrie, expressed her satisfaction with the outcome, dubbing it “a good successful trading day.”
Meanwhile, the price of bitcoin, the world’s largest cryptocurrency, dipped by 5.32% to $43,696.