The SEC’s approval of 11 outstanding Bitcoin ETF requests is no doubt a perfect start to the year. As expected, the news was met with wild jubilation from different corners of the crypto market.
Crypto Twitter is currently raving following the impressive numbers recorded on the first day of trading. Let’s describe how was the first day of the Bitcoin ETF.
Strong Launch for Bitcoin ETFs Sparks Widespread Responses and Engagement
Bitcoin ETFs officially began trading on Thursday, following Wednesday’s approval. Interestingly, at the end of the day, the ETFs recorded over $4 billion, reflecting how investors jumped on the legal products.
📈 U.S. spot bitcoin ETFs make a historic debut, racking up a staggering $4.6 billion in total trading volume on their first day. Blackrock's Ishares Bitcoin Trust led with over $1 billion in trades. Find out more about this major milestone: https://t.co/kx5YesYhXL
— Bony Bean (@bonybean) January 12, 2024
Most crypto experts view this approval as a huge test of Bitcoin’s resilience and ability to fully penetrate the mainstream market. The spot Bitcoin ETF market is already competitive.
Companies such as ARK 21Shares Bitcoin ETF (ARKB.Z), Grayscale Bitcoin Trust (GBTC.P), and BlackRock’s iShares Bitcoin Trust (IBIT.O) are all in a heated battle for market control. Interestingly, trading data showed that Grayscale and BlackRock dominated trading volumes on Thursday.
Before Wednesday’s approval, some of the issuers had drastically reduced the rates for their products. The new bitcoin ETFs have fees ranging from 0.2% to 1.5%. Interestingly, most companies are willing to waive those fees completely for some time or a specific dollar volume of assets. Valkyrie lowered its fees to 0.25% once the ETF began trading and waived them for the first three months.
NEWS – #Bitcoin ETF applicants are making last-minute amendments to reduce their fees before approval:
– Bitwise has lowered its fees to 0.20%.
– Valkyrie's fees are now at 0.49%.
– Invesco Galaxy has lowered its fees to 0.39%.
– WisdomTree's fees are now 0.30%.— Simply Bitcoin (@SimplyBitcoinTV) January 9, 2024
There are differing opinions about how much spot bitcoin ETFs could generate. For example, analysts at Standard Chartered predicted that the ETFs could bring in $50 billion to $100 billion this year alone. Similarly, Bernstein analysts projected that flows will gradually increase to reach $10 billion in 2024. Other analysts state that inflows over five years might total $55 billion.
Reactions from the Market to the Bitcoin ETF
Different crypto experts and executives offered their opinions on the ETFs and what they could mean for the industry at large. Sui Chung, CEO of CF Benchmarks, explained that “The ETF will most likely create more demand, which will therefore lead market makers to assign more capital to support that liquidity. Crypto market liquidity still hasn’t fully recovered from the FTX crash in November 2022.”
Just remember, the @SECGov didn't approve Bitcoin ETFs because they wanted to, they approved them because they had to.
— Cameron Winklevoss (@cameron) January 11, 2024
Following the SEC’s approval, the Winklevoss twins, who had been the first to apply for a bitcoin ETF in 2013, shared their reactions to the event. Cameron Winklevoss wrote on X “Just remember, the [SEC] didn’t approve Bitcoin ETFs because they wanted to; they approved them because they had to.”
Today, demonstrates the unstoppable power of Bitcoin and the inability of the establishment to stop it. They tried to fight it for over a decade and finally capitulated. Bitcoin won. It broke the establishment. The @SECGov lost and proved that it's a failed institution.
— Tyler Winklevoss (@tyler) January 11, 2024
Also, prominent crypto executives such as the new Binance CEO, Richard Teng, were not left out of the action. Teng remarked that the approval “will be remembered in crypto history.”
Today will be remembered in crypto history.
Spot #Bitcoin ETFs have arrived, giving #BTC access to a whole new class of investors and making Bitcoin a more approachable asset for many crypto-curious. https://t.co/9ETQvkurxk
— Richard Teng (@_RichardTeng) January 10, 2024
Ripple’s Brad Garlinghouse wrote, “I expect this will be yet another catalyst for institutional investment and adoption.” In addition, Crypto.com’s Kris Marszalek remarked that Wednesday’s approvals illustrate that “the US market is a long-term crypto market.”
The significance of this moment cannot be overstated.
Congrats to all who have worked to get Bitcoin spot ETFs approved!
Today’s news is further legitimization of crypto as an asset class. I expect this will be yet another catalyst for institutional investment / adoption,… https://t.co/3jlqQYm0Xl
— Brad Garlinghouse (@bgarlinghouse) January 10, 2024
Some crypto experts believe the approved Bitcoin ETF could pave the way for other crypto ETFs. These products will no doubt usher in a new era for the industry.
