The VanEck Bitcoin Strategy ETF (XBTF) ended its first trading day on November 16 with “decent” trading volume, but pales in comparison to comparable releases.
Bitcoin ETF futures provide investors with an opportunity to learn about the potential future prices of Bitcoin without forcing them to hold Bitcoin on their own.
At the close of the Chicago Stock Exchange (CBOE), XBTF has raised around $ 9.5 million in total assets (AUM) and has a daily trading volume of around $ 4.6 million, according to Investing.com. This is just a small fraction of the $ 1 billion trading volume on the first day, which was demonstrated by ProShares Bitcoin Strategy (BITO) on October 19 on the New York Stock Exchange. Since then, BITO has ranked among the top 2% ETFs in terms of total trading volume.
Tommy Horan, head of corporate partnerships at Australia’s Swyftx, said it was “a very subdued launch, but would not bother VanEck too much. Their [low] fees should ensure a steady flow of funds in the next quarter.”
“This has not always been an event after all the hype surrounding the $ 1.1 billion launch of ProShares and the continuation of the trend we saw with the Valkyrie ETF.”
Valkyrie’s Bitcoin Futures ETF also showed a relatively weak start as the BTF price fell 3% in the first hour of trading on October 22 on the Nasdaq, despite its $ 78 million trading volume.
Eric Balchunas, head of ETF analysts at Bloomberg, hinted in a tweet from November 17 that the XBTF trading volume would naturally be good, but BITO has largely overshadowed it.
The low volume of XBTF came just after the SEC rejected VanEck’s request for a spot Bitcoin ETF. Unlike a futures ETF, a spot ETF will allow investors to see the current bitcoin price without having to hold BTC on their own.
Overall, Horan welcomed the launch of the XBTF, but said that crypto-ETFs will not achieve their success until the ETF is approved immediately: if they beat their own skating tips. “