The first day for spot Bitcoin exchange-traded funds closed with notable momentum. The broader group of the top 11 ETFs delivered a strong start, as the benchmark cryptocurrency posted a modest gain while heavy trading activity rolled through. Grayscale Bitcoin Trust, now converted into an ETF, led the pack with roughly $1.7 billion in turnover, according to Bloomberg data. It was followed by BlackRock’s iShares Bitcoin Trust, which logged just over $880 million in revenue. Paradoxically, several ETF issuers tied to Bitcoin finished lower for the day, including Ark 21Shares and Franklin, while Bitcoin itself rose about 0.8%. In short, today marked a historic moment for the crypto asset space as the U.S. Securities and Exchange Commission (SEC) approved 11 spot Bitcoin ETFs on the same trading session.
SEC approval of spot Bitcoin ETFs unleashed broad optimism across equity markets. Demand for these products has been building for months, yet today’s session stood out as uniquely strong. Within hours, Grayscale’s ETF emerged as the third most traded fund in history, aided by a legacy trust structure that dates to 2013 and current assets approaching $27 billion. It’s worth recalling that the first Bitcoin futures ETF began trading in 2021 and immediately showed robust activity, turning into one of the most active launches on its day of debut.
Because ETF cash flows are calculated after the fact, the net inflows and outflows will not be released until Friday. Some initial volume may reflect pre-arranged blocks from issuers. It will take time for demand to normalize and become more organic as more brokers list these funds. Investors may soon face heightened competition as brokers compete on fees. Grayscale cut its expense ratio to 0% for the first six months, with Ark softening to 0.25% in the same period.
SEC recognition and conditions
The SEC’s Wednesday night approval covered 11 spot Bitcoin ETFs, a decision that surprised some observers even as it confirmed a major policy shift. The regulator emphasized that this action does not imply a general endorsement of crypto asset securities listing standards. The shift represents a fundamental change from the agency’s prior stance. Before this week, the SEC had rejected more than 20 Bitcoin ETF filings between 2018 and 2023. The latest initiative is spearheaded by Grayscale, which faced scrutiny in an earlier court ruling that sent the case back to the SEC for redress. The chair, Gary Gensler, framed the outcome as a path forward that prioritizes orderly listing and trading of spot Bitcoin ETF shares under clear rules.
To qualify, a Bitcoin ETF must satisfy three core requirements. Sponsors must provide complete, fair, and accurate information so investors can make informed decisions. These funds must be listed and traded on registered national exchanges, which have strict fraud-prevention standards and SEC oversight. The commission also underscored its commitment to investigating any fraud or manipulation, including schemes that involve social media platforms. Finally, the SEC opened a window to further evaluation by approving ten additional spot ETF applications for review, ensuring robust competition in the market.