Data sourced from the London Stock Exchange Group (LSEG) showed that approximately $4.6 billion worth of shares in approved US-listed Bitcoin exchange-traded funds (ETFs) had exchanged hands by Thursday mid-day.
The approved spot Bitcoin ETFs from Bitcoin Trust, Grayscale, ARK Investment, and eight others entered the market on Thursday and set off fierce competition among issuers. On the other hand, some platforms like Vanguard are still adamant about offering the new product to their clients.
Several applications had been declined by the SEC due to investor protection concerns. Additionally, the increased cryptocurrency-related scams further influenced the earlier rejections.
Gary Gensler, SEC’s chairman, stated that approving the applications didn’t amount to endorsing Bitcoin. He further added that digital currencies, particularly cryptocurrencies, are speculative and volatile assets that should be approached cautiously.
Following the launch, Bitcoin rallied and achieved its highest price since December 2021, trading at $46,303 (a 0.77% price gain).
Competition among issuers prompted some to slash their fees, while others waived the fee entirely. The standard fee range for the new product is 0.2% to 1.5%.
Bernstein’s analysts believe that the spot Bitcoin ETF flow will gradually build up to surpass $10 billion in 2024. On the other hand, Standard Chartered analysts estimated that the ETFs could draw $50 billion to $100 billion this year alone.
However, other analysts have a different opinion. They believe that the ETF’s inflows cannot reach $55 billion in under five years.
