Bitcoin ETFs to Attract $1.4 Billion in Two Days

SEC approved 11 Bitcoin spot ETF applications in a historical decision on 10th January 2024. Grayscale, one of the biggest Bitcoin Trusts, reported $579 million in outflows on the first trading session after obtaining SEC approval regarding converting the trust into an ETF.

As per data projections shared by Bloomberg ETF analyst Eric Balchunas, Bitcoin spot ETF filings have generated $1.4 billion as inflows during the first two days of trading. He further stated that a total of 500,000 transactions were made on the ETF funds valued at $3.6 billion.

The analysts took note of total inflows and outflows in Bitcoin spot ETF for sharing a trading volume analysis. He further stated that the estimated trading volume may be subjected to fluctuations on account of underway transactions and pending account settlements.  

Grayscale Bitcoin Trust (GBTC) inflows were recorded at $819 million. James Seyffart, an ETF expert from Bloomberg projected earlier that Bitcoin ETFs may generate up to $10 billion in the first year of approval.

GBTC ETF Listing

In contrast to $579 million as outflows, GBTC spot ETF printed $819 million in inflows. Anthony Scaramucci says that GBTC investors booked losses and opted for lower-fee alternatives.

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As per analysts, GBTC investors availed share redemption option after the Securities and Exchange Commission (SEC) approved Bitcoin spot ETF application following a rule change. The platform is often quoted as one of the biggest reserves of Bitcoin with $27 billion in reserves as per Arkham Intelligence.

GBTC listed share offerings since 2013 but investors were only able to get a redemption option on 11th January after the Bitcoin spot ETF approval. Meanwhile, BlackRock’s iShare Bitcoin Trust led the market with $497.7 million in net flows. The second was Fidelity Advantage Bitcoin ETF gaining $422.3 million, and Bitwise ranked next with $237.9 million.

In the 90-day duration before the approval of Bitcoin spot ETF, Bitcoin prices recorded a 75% rally. However, prior to the spot ETF approval Bitcoin fluctuated by 6.8% between 11th and 12th January.

During this duration market also reacted to a fake SEC positing that impacted Bitcoin prices. At the same time, Cointelegraph analysts predicted a price fluctuation based on news impact shortly after Bitcoin spot ETF was first reported.

VanEck to Delist Bitcoin Strategy ETF

While a multitude of financial firms were competing for a Bitcoin spot ETF, VanEck filed for an additional strategy ETF. The firm is among the 11 firms that received approval of Bitcoin spot ETF on 10th January, 2024.

However, the firm recently disclosed that it is planning to shut down and liquidate the Bitcoin Strategy ETF. The product was introduced two years ago. The firm has reported that the board of trustees at VanEck has voted in favor of liquidation and dissolution of BTC strategy ETF at Cboe BZX exchange.

VanEck analysts monitor and evaluate ETF listings based on a number of standardized factors such as liquidity, performance, AUM, and investment demand. The firm noted that the decision to liquidate the strategy ETF application was based on the aforementioned factors and approval of the Bitcoin spot ETF application.

The firm informed the investors that they will be able to sell their strategy ETF shares until 30th January, 2024 with XBTF getting a delisting on 6th February.

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