VanEck’s Bitcoin Strategy ETF (XBTF), closed its first trading day on Nov. 16 with a respectable trading volume but a lower trading volume than similar launches.
Bitcoin futures ETFs give investors exposure to future Bitcoin prices without requiring them to own any Bitcoin.
XBTF had approximately $9.5 million in assets under Management (AUM) at market close on the Chicago Board of Exchange. It also saw $4.6 million daily trading volume, according to investing.com. This is only a fraction the $1 billion in trading volume that ProShares Bitcoin Strategy (BITO), enjoyed on Oct. 19. Since then, BITO has risen to the top 2% in total trading volume.
Tommy Horan, Head Corporate Partnerships at Swyftx, stated that the launch was “pretty subdued” but VanEck will not be too concerned. The [lower] fees they charge should result in steady inflows for the next quarter.
“This was always going be a non-event, after all the hype surrounding ProShares’ $1.1bn Launch and continues the trend that we saw with Valkyrie’s ETF.”
Valkyrie’s Bitcoin futures ETF had a disappointing launch. BTF dropped 3% in the first hour trading on Oct. 22, despite having $78 million of trading volume.
Eric Balchunas is a senior ETF analyst at Bloomberg. He suggested in a tweet on Nov. 17, that XBTF’s trading volume would usually be quite good but has been greatly overshadowed and dominated by BITO.
On Day One, $XBTF was worth $5m. That would normally be quite impressive, prob Top 10% launch this year. This is just a shadow of the ridiculous $1b $BITO that was laid, and $78m that $BTF did. pic.twitter.com/bjqrUnThzr
— Eric Balchunas (@EricBalchunas) November 16, 2021
VanEck’s request for a spot Bitcoin ETF was rejected by the SEC. This has resulted in a lower trading volume on XBTF. A spot ETF, which is not a futures ETF allows investors to have exposure to Bitcoin’s current price without having to own it.
Horan praised the XBTF’s launch, but said that crypto ETFs will not be able to hit their stride until a place ETF is approved. “It’s great news for the industry to see cryptocurrency funds get regulatory approval. But until a site ETF is accepted no one is going to be getting off their skis.”
Related: SEC reportedly reprimands Valkyrie’s leveraged Bitcoin ETF
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