The VanEck Bitcoin System ETF (XBTF) closed its first day of trading on November 16 with a “remarkable” trading volume, but has been lacking in volume compared to similar starts.
Bitcoin futures ETFs provide investors with exposure to the potential future price of Bitcoin without forcing them to hold Bitcoin themselves.
By the close of trading on the Chicago Board of Trade (CBOE), the XBTF had accumulated assets under management of approximately USD 9.5 million (AUM) and had a trading volume of approximately USD 4.6 million. This is only a fraction of the $ 1 billion trading volume on the first day Bitcoin ProShares Strategy (BITO) saw on the NYSE on October 19. BITO has since entered the top 2% of all ETFs by total trading volume.
Tommy Horan, director of corporate partnerships at Swyftx, Australia, says it’s “a pretty smooth start, but VanEck won’t be too nervous. From them [lower] Fees will see a steady flow of capital over the next quarter.
“This will always be a minor event after all the hype surrounding the $ 1.1 billion launch of ProShares, and it continues the trend we saw with the Valkyrie ETF.”
Valkyrie’s Bitcoin Futures ETF also made a relatively lackluster debut, with BTF falling 3% in its first trading hour on October 22nd on the Nasdaq, despite its trading volume of $ 78.
Eric Balchunas, Bloomberg Senior ETF Analyst, recommends November 17th tweet that the trading volume of normal XBTF would be pretty good, but it was heavily obscured by BITO.
$ XBTF Around $ 5 million was traded on the first day. Usually that would be pretty good, maybe the top 10% of releases this year. It’s only covered by a stupid $ 1 billion $ BITO collected, not to mention $ 78 million $ BTF to do. pic.twitter.com/bjqrUnThzr
– Eric Balchunas (@EricBalchunas) November 16, 2021
The lower trading volume on XBTF comes after the SEC rejected VanEck’s application for a spot Bitcoin ETF. Unlike futures ETFs, spot ETFs give investors access to the current Bitcoin price without having to hold BTC.
Overall, Horan praised the launch of the XBTF, but said crypto ETFs will only move forward after a spot ETF is approved: “It’s great for the industry to see crypto funds. The cryptocurrency will get regulatory approval, but until one Spot ETF is available. ” accepted, no one will learn their ski tips. “
Related: SEC is reportedly pushing back Valkyrie’s leveraged bitcoin ETF