Less than 24 hours since financial institutions began offering the newly approved spot Bitcoin exchange-traded fund (ETF), the financial product has raked in over $4.6 billion in trading volume from investors. The massive uptrend signifies investors’ interest in the Bitcoin-backed asset.
Bitcoin ETFs Crosses $4.6B
Yesterday marked a watershed moment for the entire crypto market as the U.S. Securities and Exchange Commission (SEC) gave the green light for financial institutions to offer 11 spot Bitcoin ETFs to American investors. The approval came after a 10-year wait.
Spot Bitcoin ETF is an investment vehicle that tracks BTC’s price closely. The financial product paves the way for American investors to gain exposure to Bitcoin while avoiding the risks and complications of purchasing actual BTC.
Grayscale’s GBTC, the investment company’s Trust product that was converted into a spot Bitcoin ETF, leads the chart. The firm accounts for nearly half of the entire new market share. Next is BlackRock’s iShares Bitcoin Trust (IBIT), which holds over $1 billion. Financial company Fidelity ranks third on the list with over $712 million in market share.
Other investment companies that now offer the U.S.-approved spot Bitcoin ETF are ARK Invest & 21Shares, Bitwise, Franklin Templeton Investments, Invesco, VanEck, Valkyrie, WisdomTree, and Hashdex.
To stay ahead of competitors, most of these investment companies recently plunged into a frenzy, reducing their fees to attract the most users. Firms like Invesco and Bitwise have introduced zero-fee trading for users.
BTC Trades Above $46k
Before the SEC’s approval, market experts anticipated that the Bitcoin-backed investment vehicle would push BTC’s value higher due to the rise in demand. Bitcoin did react to the announcement, soaring to as high as $48,750.
According to the price tracking platform CoinStats, BTC currently trades at $46,300, representing a 4.3% increase in the past week. With more cash inflow in Bitcoin ETFs, BTC’s price may see more uptrends.
Source: CoinStats
