In a remarkable display of investor enthusiasm, Bitcoin futures exchange-traded Funds (ETFs) broke records on their first day of trading. The ProShares Bitcoin Strategy ETF (BITO), the first-ever Bitcoin ETF in the United States, along with other ETFs like VanEck Bitcoin Strategy ETF (XBTF) and Valkyrie Bitcoin Strategy ETF (BTF), reached an astonishing daily trading volume of $2 billion.
This milestone comes just a day after setting a prior record of $1.4 billion, according to data from The Block.
BITO, launched in October 2021, played a significant role in this historic achievement by contributing $1.97 billion, or 97%, of the $2 billion daily record.
Bloomberg ETF analyst Eric Balchunas noted, that BITO smashed its all-time volume record in this historic day with $2 billion traded.
He speculated that part of this increase may be due to redemptions, but emphasized that BITO’s liquidity will continue to serve a valuable purpose for market makers.
BITO reached an all-time high of over $2 billion in assets by market close, highlighting its growing prominence in the cryptocurrency market.
Strong debut for spot Bitcoin ETFs
In parallel to the success of Bitcoin futures ETFs, 11 newly-launched spot Bitcoin ETFs also made an impressive debut. Among these, BlackRock led the pack with its spot Bitcoin ETF (IBIT), amassing over 700,000 trades and a total trading volume exceeding $4.5 billion.
IBIT alone reached $1.05 billion in trading volume, surpassing BITO’s first-day futures Bitcoin ETF volume from 2021. Fidelity’s FBTC ETF also made a substantial impact with nearly $685 million in trading volume.
Grayscale’s converted spot Bitcoin ETF product (GBTC) generated an even greater trading volume, totaling approximately $2.3 billion. However, it remains unclear how much of this volume represents capital flowing out of the instrument rather than fresh inflows.
While ARK 21Shares Bitcoin ETF (ARKB) generated $278 million in trading volume on its debut, Bitwise (BITB) recorded $122 million.
The remaining ETFs, including Franklin Templeton (EZBC), Invesco Galaxy (BTCO), and VanEck (HODL), saw trading volumes below $100 million. Meanwhile, Valkyrie (BRRR), WisdomTree (BTCW), and Hashdex’s (DEFI) trading volumes remained below $10 million.
Historic day for ETFs
In the world of Exchange-Traded Funds, this momentous debut by Bitcoin ETFs marks a historic milestone. Bloomberg ETF analyst James Seyffart aptly summarized the significance of the event, stating, “Easily the biggest day one splash in ETF history.”
Investors and market observers alike are keenly watching the evolution of cryptocurrency ETFs, as they offer a more accessible and regulated avenue for exposure to the digital asset market. The rapid success of both Bitcoin futures and spot ETFs underscores the growing mainstream acceptance and interest in cryptocurrencies as a legitimate investment class.
As the cryptocurrency market continues to evolve and mature, these ETFs are likely to play a pivotal role in providing investors with diversified and convenient access to Bitcoin and other digital assets. The record-breaking trading volumes on their debut days signal strong demand and a promising future for these financial products.
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