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First performance of Bitcoin spot ETF… “Transaction worth 6 trillion won”

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Grayscale-Blackrock-Fidelity stand out
Distrust of virtual currency still remains… Vanguard: “No release plans”

On the 11th (local time), when the Bitcoin spot exchange-traded fund (ETF) was traded for the first time in history, $4.6 billion (6.06 trillion won) was traded on the U.S. stock market. As the U.S. Securities and Exchange Commission (SEC) approved the listing of Bitcoin spot ETF the day before, 11 products began trading at once on this day.

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As controversy over virtual currency continues in the U.S. financial market, the listing of Bitcoin spot ETF allows institutional investors and individuals to invest in these ETF products through NASDAQ, the New York Stock Exchange (NYSE), etc., making this transaction a catalyst for the virtual currency industry. The dominant analysis was that it would be a ‘game changer’. Some analysts say that the success of ETF products in the future will be a test of investors’ level of acceptance of virtual currencies.

According to Reuters on the first day of trading, among 11 products, Grayscale ETF had the highest trading volume with $2.326.18 billion, followed by BlackRock’s IBIT with $1.035.34 billion and Fidelity with $712.07 million. It is a rare case that 11 ETF products for a specific asset are listed at once, and the ETFs of three asset management companies appear to have stood out amidst fierce competition.

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As ETF trading began, the price of Bitcoin hit $49,000 during the day, the highest level in two years since December 2021, and then retreated to the $46,000 level as of 5:30 p.m. Eastern time. Due to expectations of virtual currency being incorporated into the system, the price of Ethereum, the second largest virtual currency after Bitcoin, showed an upward trend, exceeding $2,600 during the day.

Estimates of the investment funds that Bitcoin ETFs will attract in the future vary from institution to institution. Bernstein predicted that there could be an inflow of $10 billion this year, and Standard Chartered predicted that there could be an inflow of $50 billion to $100 billion.

Some are warning that even though it is possible to invest in Bitcoin through Nasdaq, the risks of virtual currency do not disappear.

On this day, Shamin Mosabar-Rahmani, head of Goldman Sachs’ investment strategy group and chief investment officer of asset management, said in a forum, “There is no place for virtual currency in Goldman Sachs’ investment portfolio,” and “If you think about it, there is no need for something like Bitcoin.” Is it worth it? “I don’t think it’s an asset class worth investing in,” he said.

A spokesperson for Vanguard, the world’s second-largest asset management company, also emphasized, “We have no plans to create our own Bitcoin ETF, and we have no plans to offer another asset management company’s Bitcoin ETF.”

New York =

Source: Donga

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