BlackRock and Fidelity’s spot bitcoin ETFs got off to a hot start on Thursday.
The two Wall Street juggernauts are leading the pack in early trading as between the two of them, their new spot bitcoin ETFs have seen more than $958 million in trading volume as of 11:10 a.m. EST on Thursday morning, according to data from Yahoo Finance compiled by The Block Pro Research. As both BlackRock and Fidelity’s products are new it’s likely the majority of the trading volume is made up of inflows of capital.
That could be different for Grayscale’s spot bitcoin ETF, which instead of being a new exchange-traded fund is a conversion of its flagship GBTC fund. Grayscale’s ETF had about $1 billion in trading volume as of 11:10 a.m. EST but it’s unclear how much of that could possibly be capital flowing out of the instrument.
The ARK 21Shares Bitcoin ETF had $148 million of trading volume. Some other new spot bitcoin ETFs that began trading, like those offered by Franklin Templeton and Valkyrie registered volumes below $10 million on Thursday morning, the data also showed.
Spot bitcoin ETFs could bring in $100 billion
Many market watchers have attempted to speculate how much capital will flow into the new instruments, which allows investors to wager on the price of bitcoin without having to own the digital currency. The new spot bitcoin ETFs could bring in as much as $50 billion to 100 billion in 2024, according to Standard Chartered Bank.
After months of waiting, the Securities and Exchange Commission approved 11 spot bitcoin ETFs yesterday. The moved is viewed as a major boon for crypto and the market reacted accordingly with not only bitcoin, but many more top tokens all increasing in value on Thursday.
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