Blackrock Wins Big as Bitcoin ETF Trading Hit $4.5bn on Day One

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• BlackRock emerged victorious on the inaugural day of the Bitcoin ETF race, securing the majority of the $4.5 billion inflows
• Grayscale GBTC holders had more reason to celebrate, being now able to convert shares into ETF holdings cash out after a decade.
• Bitcoin’s trading volume surpassed expectations on Wall Street, confounding market observers and showcasing its unpredictable nature

Blackrock was the big winner on day one of the long-awaited Bitcoin ETF race, taking the majority of the $4.5 billion of inflows that came the way of the 11 entrants. However, Grayscale GBTC holders may have been the most relieved, as they can now convert their GBTC shares into ETF holdings or cash out after more than a decade of operation. The trading volume surprised market observers who had anticipated a more modest debut for Bitcoin on Wall Street, but Bitcoin did what Bitcoin does and confounded expectations.

Asus Blackrock Takes a Quarter of all Inflows

BlackRock’s iShares Bitcoin Trust, traded on the Nasdaq as IBIT, emerged as a standout performer on day one of Bitcoin ETF trading, contributing nearly $1 billion to the total trading volume. Despite a strong initial showing, IBIT closed the day at $26.62, experiencing a 4.6% decrease from its opening value. 

The list of actively trading spot BTC funds experienced a shift during the day, with the removal of one entrant; Hashdex Bitcoin ETF, initially included in the SEC’s approval announcement, clarified that it had received permission for its Hashdex Bitcoin Futures ETF to convert into a spot BTC fund. The fund, currently operating as a futures product, is awaiting SEC approval for a registration statement that will finalize the transition.

Asus GBTC Holders Have Reasons to be Cheerful

While BlackRock dominated the spotlight, Grayscale achieved a significant milestone with its Grayscale Bitcoin Trust. This fund, established in 2013 with a long-term vision of becoming an ETF, reported an all-time high daily volume of 56 million shares on the debut day of spot Bitcoin ETF trading.

The first day’s trading of Grayscale Bitcoin ETF shares came exactly a year after we reported that GBTC holders were plotting a revolt having seen their investments collapse to well below the net asset value.

However, the ETF rumors and eventual approval have had a dramatic effect on the Grayscale premium, which is now back to where it was in March 2021:

The remarkable success of spot Bitcoin ETFs on their first day of trading underscores the growing institutional interest in cryptocurrency, and with an Ethereum ETF potentially in the works later in the year, the sector has more reasons to be cheerful than ever.