Summary
Several spot bitcoin ETFs began trading on Thursday after receiving approval from the US Securities and Exchange Commission. The ETFs, including one from Ark Invest and 21Shares, saw day-one trading volumes of nearly 6 million shares, reflecting high demand for such products. The approval of spot bitcoin ETFs allows investment professionals who previously couldn’t invest in crypto to enter the market. However, the adoption of these funds is not expected to be immediate, and long-term demand is anticipated to increase gradually. The focus of Ark Invest and 21Shares’ marketing efforts is to attract new investors to the crypto space by building confidence and welcoming them into the community. The companies also have plans to launch a spot ether ETF in the future.
Key Points
1. The launch of spot bitcoin ETFs in the US has generated significant trading volumes, reflecting the pent-up demand for such products. The first day of trading saw volumes of nearly 6 million shares, or $275 million, with competing funds by Grayscale, BlackRock, and Fidelity experiencing more activity.
2. The entry of US institutions into the BTC market is generating excitement, and it is expected that there will be a second wave of activity in the coming weeks and months as bitcoin ETFs become more mainstream. The partnership between Ark Invest and 21Shares to launch a spot bitcoin ETF in 2021 has contributed to this growing interest, with other firms subsequently entering the race.
3. The approval of spot bitcoin ETFs opens up the crypto market to various investment professionals who were previously unable to invest on behalf of their clients. A survey conducted earlier this month revealed that approximately 80% of financial advisers were either unable to buy crypto for clients or unsure if they could. The availability of spot bitcoin ETFs addresses this limitation and allows for greater participation in the crypto space.