The initial reaction to the new BTC ETFs has been highly positive, with close to $2 billion in inflows and a trading volume of $4.6 billion within the first three days of the launch. B2C2 has been instrumental in facilitating flows for a number of these new ETFs.
To contextualize, the $1.9 billion in Assets Under Management (AUM) for Bitcoin ETFs has outperformed the launch of the ProShares ETF on BTC futures, which attracted $1.2 billion after three days in 2021, and has also exceeded the SPDR Gold Shares ETF on gold launched in 2004.
The SEC's decision to approve the launch of ETFs by some of the world's leading asset managers, in conjunction with the growing digital asset industry, is significant for several reasons:
The involvement of leading asset managers, the role of top-tier banks as Authorized Participants and the most reputable exchanges listing these ETFs contribute to the credibility and stability of the ecosystem.
However, the market's reaction post-launch of these ETFs seems to have fallen short of some participants' expectations. Notably, the ETF narrative has gained traction since the June 2023 filing from iShares. Unfortunately at the same time, newsflow around Binance and Coinbase took away the spotlight. It was only in September, as deadlines approached for the SEC to make a decision that confidence grew regarding their approval. BTC was trading around $26,000 at the time. Since then, the market has been very supportive of developments in the ETF space, propelling Bitcoin to a high of $49,000. This is indeed spectacular price action!
Despite this, Grayscale's outflows present a contrasting picture. It is important to consider:
Overall, these developments represent a significant stride for the industry. As a major liquidity provider, B2C2 salutes the decision of the SEC, the entry of tier 1 participants and continues to offer services to support Bitcoin liquidity for various ETF providers. We are looking forward to the introduction of additional ETFs.
B2C2 is a global leader in institutional liquidity for digital assets. Founded in 2015, we are trusted by blue chip hedge funds, institutional managers, brokers, crypto exchanges, and crypto foundations. We provide deep, reliable liquidity and pricing in crypto, delivering seamless execution 24/7/365. Majority owned and backed by Japanese financial conglomerate, SBI, B2C2 Ltd is headquartered in the UK, with offices in the US, Japan, Singapore, France and Luxembourg.
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