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With the introduction of the spot Bitcoin exchange-traded fund, the digital asset ecosystem is buzzing with excitement, influencing market dynamics. Asset management giants were busy with activities after the SEC approved issuing spot BTC ETF products on January 10.
Expanding Into The US Market
Following the official approval of Valkyrie Investments’ spot Bitcoin exchange-traded fund (ETF), investment giant Coinshares is exercising its option to acquire Valkyrie Funds. Recent authorization from the US Securities and Exchange Commission (SEC) for Valkyrie’s spot Bitcoin ETF represented a significant milestone.
Accordingly, the crypto ETF commenced formal trading on Thursday, and CoinShares capitalized on the opportunity to expand its market presence in the United States. After the acquisition, Coinshares’ CEO, Jean-Marie Mognetti, reiterated the firm’s commitment to attaining the same success in the American market as in Europe.
CoinShares’ primary objective is to offer US investors unparalleled access to regulated digital asset products. Mognetti underscored the acquisition as proof of its forward-thinking approach, signifying a profound aspiration to strengthen its standing as a global frontrunner in the ever-evolving digital assets industry.
Increasing Coinshares’ Asset Under Management
Following the acquisition, CoinShares expects a considerable rise in the value of assets under its control to around $110 million. This growth can be attributed to the incorporation of Valkyrie’s three crypto ETFs, which adds to CoinShares’ existing $4.5 billion assets under management.
It is worth noting that when Valkyrie’s spot Bitcoin ETF first hit the market, it had a lower trading volume than its competitors, ranking third-worst among the eleven spot Bitcoin ETFs, which debuted the same day.
Spot Bitcoin ETFs Performance
Among the newly launched spot bitcoin ETFs, BlackRock emerged as the frontrunner, outperforming the others. According to Bloomberg ETF analyst Eric Balchunas, trade volumes on these funds exceeded 700K, valued at more than $4.5 billion.
BlackRock’s spot bitcoin ETF, known as IBIT, recorded a trading volume of $1.05 billion, significantly outperforming the first day of the futures BTC ETF trading volume record set by BITO in 2021. Fidelity’s FBTC ETF ranked second, with over $685 million in trading volume.
Grayscale’s converted spot bitcoin ETF product, GBTC, was the top performer in terms of trading volume, generating $2.3 billion. However, the ARK 21Shares bitcoin ETF (ARKB) and Bitwise (BITB) saw significant trading volumes of $278 million and $122 million, respectively, on their debuts.
Other ETFs, notably Franklin Templeton (EZBC), Invesco Galaxy (BTCO), and VanEck (HODL), recorded trading volumes below $100 million. Balchunas summarized the momentous day by calling it “easily the biggest day one splash in ETF history.”
Bitcoin Futures ETF Hits $2 Billion in Daily Trading Volume
Furthermore, the launch of eleven spot bitcoin ETFs resulted in an extraordinary increase in daily trading volumes for Bitcoin (BTC) futures ETFs, reaching an all-time high of $2 billion. Leading the charge was the ProShares Bitcoin Strategy ETF (BITO), the first Bitcoin ETF product released in the United States in October 2021.
BITO accounted for $1.97 billion, or 97% of the $2 billion total. Meanwhile, Balchunas predicted that BITO’s liquidity would continue to play an essential role for market makers shortly. While conceding that redemptions may account for some of the volumes, Balchunas added that BITO’s liquidity would have a massive influence on market dynamics.
Simeon Hyman, ProShares’ global investment strategist, emphasized the ETF’s ongoing growth, citing a 10% gain in the past week and an 18% increase in the last month.
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