The initiation of operations for the new Bitcoin ETFs has been auspicious, with the initial performance of BlackRock and Fidelity standing out. Both financial giants on Wall Street are leading the market with an impressive combined trading volume exceeding $958 million.
The innovative nature of BlackRock and Fidelity’s products suggests that a significant portion of the trading volume can be attributed to capital inflows. In contrast, Grayscale’s Bitcoin ETF, being a conversion of its flagship fund, reached around $1 billion in trading volume as of 11:10 a.m. EST. However, there is uncertainty about how much of this volume may represent capital outflows from the instrument, given its conversion nature.
$BITO and $GBTC are both in the Top 10 among overall ETFs in trading volume today.. $IBIT and $FBTC also making in Top 25, just to give some context on how this volume fits in w bigger picture. Just overall superb showing. Remember eth futures ETFs barely did $2m pic.twitter.com/gOzIScTyux
— Eric Balchunas (@EricBalchunas) January 11, 2024
What Performance Did Other Bitcoin ETFs Have?
Other BTC ETFs also made their market debut, with varied results. For instance, the ARK 21Shares Bitcoin ETF recorded a respectable trading volume of $148 million. On the other hand, some new ETFs, such as those offered by Franklin Templeton and Valkyrie, garnered more modest trading volumes, falling below the $10 million mark.
Speculation about the amount of capital flowing into these new financial instruments is notable. Standard Chartered Bank estimates that the new BTC ETFs could attract between $50 billion and $100 billion in investments throughout 2024. This forecast reflects the growing acceptance and adoption of BTC as a legitimate asset class in traditional financial markets.
The approval by the SEC of 11 new Bitcoin ETFs marks a historic milestone. After months of anticipation, this decision is perceived as a significant boost for the cryptocurrency market as a whole. Market reaction is evident, not only in the high volatility of Bitcoin but also in the increase of other major cryptocurrencies.
The initial performance of Bitcoin ETFs is highly positive. As these instruments gain traction in financial markets, optimistic investment projections suggest a promising outlook for the growth of this sector throughout the year.