On Thursday, the inaugural trading day for Bitcoin exchange-traded funds (ETFs), there were significant fluctuations, reflecting the overall volatility of crypto prices.
At midday, the Grayscale Bitcoin Trust (GBTC) experienced a 1.5% increase, while the iShares Bitcoin Trust (IBIT) initially rose but later dropped by more than 3%. Notably, both funds observed substantial trading volume, with millions of shares traded within the first 10 minutes of the session. These two funds are among the earliest of a potential total of 11 funds expected to commence trading on Thursday.
The Grayscale fund holds particular significance as it transitioned from an over-the-counter trust that already possessed over $28 billion in assets. On the other hand, the Hashdex fund represents a strategy shift from an existing bitcoin futures ETF; however, as of Thursday morning, SEC filings indicated that the change hadn’t yet gone into effect.
Simultaneously, bitcoin itself experienced considerable price swings. Coin Metrics reports that the digital currency briefly surged to $49,000 in the morning, only to retreat below $47,000, ultimately posting a gain of approximately 2%. As bitcoin trading occurs around the clock, it’s worth considering that the timing of the funds’ launch may have influenced their first-day performance.
Source (CNBC)
