Bitwise Attracts $240 Million to its Spot Bitcoin ETF on First Day of Trading

Bitwise, a crypto asset manager, reported that its spot bitcoin exchange-traded fund (ETF) garnered $240 million on the first day of trading. This figure marked the highest inflow among the 10 spot bitcoin ETFs that commenced trading recently, following the approval of 11 such ETFs by the U.S. Securities and Exchange Commission (SEC). The approved ETFs include products from BlackRock's iShares Bitcoin Trust, Grayscale Bitcoin Trust, and ARK 21Shares Bitcoin ETF.

During the initial day of trading, approximately $4.6 billion worth of shares changed hands across all the newly launched ETFs. Grayscale, BlackRock, and Fidelity dominated total trading activity, as per data from the London Stock Exchange Group (LSEG). The inflow of funds into these ETFs is closely monitored as the crypto industry assesses whether digital assets can gain broader acceptance as investment vehicles.

Bitwise's Chief Investment Officer, Matt Hougan, expressed optimism about the potential growth of the market, stating, "We think that this will become a market measured in the tens of billions of dollars." The ProShares Bitcoin Strategy ETF, the first bitcoin futures ETF approved by the SEC in 2021, gathered $1 billion in assets within its initial days of trading.

Grayscale, already a major player in the crypto investment space, received approval to convert its existing bitcoin trust into an ETF, instantly becoming the world's largest bitcoin ETF with over $28.6 billion in assets under management. Despite its significant size, Grayscale's ETF experienced outflows of $95 million on the first day.

The SEC's approval of spot bitcoin ETFs marked a significant shift in its stance, as it had previously rejected such ETFs due to investor protection concerns. SEC Chair Gary Gensler clarified that the approvals did not signify an endorsement of bitcoin, emphasizing its speculative and volatile nature.

The intense competition among issuers led to adjustments in fees. Franklin Templeton slashed the fee for its bitcoin ETF to 0.19%, the lowest in the market, and waived fees entirely on the product's first $10 billion in assets under management until August. Valkyrie, another ETF issuer, reduced its fees to 0.25% after the initial day of trading. Valkyrie Bitcoin ETF reported $29.44 million in inflows on its debut day.

While the crypto market continues to evolve, the SEC's regulatory green light has spurred issuers to vie for a share of the growing market.

By fLEXI tEAM