The first day of spot Bitcoin ETFs closed successfully. Top 11 exchange traded funds The entire benchmark cryptocurrency completes its first trading day in the US More than $3.5 billion in shares traded. Grayscale Bitcoin Trust, which has been converted into an ETF, recorded the largest volume with a total move of $1.7 billion, according to data compiled by Bloomberg. It’s followed by BlackRock’s exchange-traded fund, iShares Bitcoin Trust, with just over $880 million in revenue. Paradoxically, funds that issue exchange-traded funds linked to Bitcoin closed with losses, notably Ark 21Shares (-6.8%) and Franklin (6.38%). Bitcoin showed a slight increase of 0.79%. Today is a historic day for the cryptoasset industry after the U.S. Securities and Exchange Commission (SEC) approved 11 spot bitcoin ETFs on Wednesday.
While there is no doubt that demand has been pressing for investment in these financial products for months, there is no precedent in the history of exchange-traded funds for a stock market session as positive as today’s. In just three hours, Grayscale exchange-traded fund becomes third most traded ETF in historyAlthough it has an advantage over its competitors: the trust structure has existed since 2013 and currently has assets of almost $27 billion. It should not be forgotten that the first Bitcoin futures fund started trading in 2021 and recorded a turnover of nearly 1 billion dollars during its launch. It became the second most traded fund on its first day.
Due to the way the funds process transactions, the net inflows and outflows of products will not be known until this Friday. And that initial trading volume may come from coins pre-arranged by fund issuers. We will have to wait a while for demand to stabilize and become more organic as more brokers include the funds on their platforms. Now investors They will have to wait for the “commission war”. Grayscale reduced its commission, or $1 billion, from 1.5% to 0% for the first six months, while others like Ark softened it to 0.25%.
SEC Recognition
The SEC approved 11 spot bitcoin ETFs on Wednesday night after much back-and-forth approval, even though it “in no way indicates the Commission’s willingness to approve listing standards for crypto-asset securities,” as regulator Gary, the SEC chairman, put it. Gentes. It is a complete 360-degree change from the starting position. Before this week’s decision, the SEC had rejected more than 20 Bitcoin exchange-traded fund proposals between 2018 and 2023. The latest initiative is proposed by Grayscale. The United States Court of Appeals for the District of Columbia Circuit Grayscale failed to adequately explain its rationale for not approving the ETF’s listing and trading, rescinded the firm’s order and referred the matter back to the SEC. “Taking into account these conditions and the conditions that the approved ETF must have,” Gensler states that “the most sustainable path forward is to approve the listing and trading of these spot bitcoin ETF shares.”
Bitcoin exchange traded fund must meet three requirements. The sponsors of this ETF “will be obliged to provide complete, fair and accurate information about the products” so that investors will have all the information at their disposal. Additionally, “these products will be listed and traded on registered national exchanges,” which are required to have standards to prevent fraud and will be closely monitored by the SEC to ensure compliance with those standards. Gensler emphasizes that “the Commission will thoroughly investigate any fraud or manipulation in the securities markets, including systems using social media platforms.” And finally, to ensure free competition, the SEC approved the review of 10 other bitcoin spot ETF applications.