VanEck’s Bitcoin Strategy ETF saw a slow start on Wednesday, with just $11 million in assets under management.
The “bitcoin etfs” is a new ETF that aims to track the price of Bitcoin. VanEck’s Bitcoin Strategy ETF saw a slow start after an issue with its first filing.
After weeks of anticipation, VanEck’s Bitcoin Strategy ETF (XBTF) debuted on the Chicago Board of Exchange, with a trading volume of $4.6 million on its first day, well outpacing other comparable ETFs that debuted last month.
VanEck’s ETF has had a sluggish start.
According to data from investing.com, shares of XBTF completed the day at about $59.73 and were exchanged 44,698 times for a total of $4.8 million, with around $10 million in assets under management (AUM).
According to this, the VanEck’s ETF only drew a little level of interest from investors who flooded the ProShares Bitcoin Strategy ETF on its first day. You may remember that on its first day, ProShares had a trading volume of about $1 billion.
Tommy Horan, Head of Corporate Partnerships at Australian exchange Swyftx, admitted that the VanEck launch was poor but said that there was nothing to be concerned about. By cutting its costs, he believes the ETF will be able to attract more inflows by the end of the quarter.
On Day One, $XBTF traded for around $5 million. Normally, it would be very impressive, perhaps in the top 10% of this year’s launches. It’s merely overshadowed by $BITO’s insane $1 billion bet, not to mention $BTF’s $78 million. pic.twitter.com/bjqrUnThzr
November 16, 2021 — Eric Balchunas (@EricBalchunas)
In a tweet, Bloomberg’s senior ETF analyst Eric Balchunas disclosed that XBTF’s trading volume would still be in the top 10% of the year, but that its achievement would be eclipsed by rivals like Proshares and Valkyrie, who were able to draw in $1 billion and $78 million, respectively.
The increasing number of Bitcoin futures exchange-traded funds (ETFs)
The Securities and Exchange Commission (SEC) eventually authorized the ProShares ETF’s listing in the United States last month. Since its acceptance, the commission has approved two other ETFs for the market: VanEck and Valkyrie.
While some analysts and market professionals have stated that the authorized ETFs do not accurately follow Bitcoin’s price or give direct exposure to the digital currency, many would agree that their adoption demonstrates the crypto space’s maturation.
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