Undeniably, bitcoin ETFs dominated finance talk this week. After the world’s largest cryptocurrency drove a 10-year-plus crusade of jumping through legal hoops and patiently waiting for the SEC to weigh up the pros and cons, it finally had its day on Wall Street floors.
Bitcoin ETFs debut with a flair on Wall Street
This Thursday, 11 January debut follows a day after the SEC approved direct investing in bitcoin. In total, the regulator approved 11 ETFs, steered by financial wealth managers such as BlackRock Inc. (BLK), Fidelity Investments (FBTC), and the Grayscale Bitcoin Trust (BTC).
Bloomberg reports that approximately $4.6bn did the rounds after a fierce first day of trading. Virtual asset supporters regard these ETFs as the doorway to wider financial acceptance and increased crypto growth. A senior Bloomberg Intelligence ETF analyst, Eric Balchunas, commented:
Easily the biggest splash in ETF history for a first day. No matter where you look, it’s superseded expectations.
Reportedly, bitcoin attained heights of $49,000 at one point – a feat it has not been able to manage since its highs in 2021. The digital currency ended the day at $46,075. Other prominent virtual tokens delivered varied performances.
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The Grayscale Bitcoin Trust led the pack with $2.3bn trade activity, giving it the largest debut ETF turnover in history. However, experts pointed out that this financial group’s exchange-traded product has existed since 2013 and topped other firms with almost $27bn in virtual assets.
Even the funds with no pre-existing backing recorded unprecedented trading volumes. The BlackRock iShares Bitcoin Trust (IBIT) traded a volume of $1bn, giving it the fifth place in history.
