Bitcoin
Bitcoin: Spot BTC ETFs log $4.6B on Day 1, Day 2 will…
It is early, but some institutions have emerged as leaders in the spot Bitcoin ETF trade with their volumes.
- Grayscale and Blackrock lead the spot Bitcoin ETF volume.
- Bitcoin ETFs saw around $4.6 billion on the first day of trade.
Initially, approval was granted, followed by the emergence of statistics. This scenario unfolded with Bitcoin [BTC], witnessing the approval of multiple spot ETFs.
Following the approval, traders promptly engaged in business activities. Nevertheless, early indications of resistance have started to surface.
Tracking the first-day spot Bitcoin ETF volume
The first day of trading proved to be highly active for spot Bitcoin ETFs, as evidenced by the substantial recorded volume. According to Reuters data, the cumulative volume reached approximately $4.6 billion by the close of trading on 11th January.
Among the key players, Grayscale, BlackRock, and Fidelity emerged as dominant contributors on the first day.
Grayscale, in particular, led the pack with a noteworthy volume of around $2.2 billion. This was a somewhat anticipated outcome considering its transition from a Bitcoin trust.
Among the new listings, BlackRock’s IBIT showed the highest volume. It had over $1 billion on 11th January, constituting a significant portion of the overall trade. Fidelity’s FBTC also made a notable mark with a trading volume of around $685 million on the first day.
The first sign of resistance?
Elizabeth Warren, a member of the US Senate, has consistently expressed skepticism towards cryptocurrencies, and the recent approval of the ETF did little to change her stance.
In a post following the approval, she criticized the SEC, stating they were “wrong on the law and wrong on the policy.” Warren also expressed concerns that Bitcoin and crypto, in general, were not adhering to basic anti-money laundering regulations.
The @SECgov is wrong on the law and wrong on the policy with respect to the Bitcoin ETF decision.
If the SEC is going to let crypto burrow even deeper into our financial system, then it's more urgent than ever that crypto follow basic anti-money laundering rules.
— Elizabeth Warren (@SenWarren) January 11, 2024
The disapproval extended beyond Warren’s stance, as institutional disapproval surfaced as well. Reports indicate that Vanguard has opted not to facilitate the trading of spot Bitcoin ETFs.
Vanguard’s rationale is centered on the assertion that spot BTC ETFs do not align with their preferred asset class.
The reactions to both Senator Warren’s comments and Vanguard’s position have been varied. It remains early in the days of spot ETFs, and their future performance could either reinforce the negative sentiments or weaken them.
Read Bitcoin (BTC) Price Prediction
2024-25Bitcoin has yet to see positive reactions
As per the daily timeframe chart, Bitcoin has yet to embrace the hype surrounding its spot ETFs. The chart showed that by the end of 11th January, BTC experienced a decrease, albeit a modest one below 1%.
Despite this decline, it continued to trade above the $46,000 mark. As of this writing, the downward trend continued but was still less than 1%. It was trading at around $46,170.
Source: Trading View
