Lower volumes compared to ProShares were expected, however Van Eck hopes its lower fees will provides it a grip over competitors.
The VanEck Bitcoin Strategy ETF (XBTF) closed its 1st day of commerce on November. 16 with "respectable" commerce volume, however one that pales compared to similar launches.
Bitcoin futures ETFs give investors exposure to potential future costs of Bitcoin while not forcing them to carry any Bitcoin themselves.
At market shut on the Chicago Board of Exchange (CBOE), XBTF had accumulated around $9.5 million in assets below management (AUM), and saw around $4.6 million in daily commerce volume in keeping with investment.com. this is often simply a fraction of the first-day commerce volume of $1 billion the ProShares Bitcoin Strategy (BITO) enjoyed on Oct. 19 on NYSE. BITO has since reached the highest a pair of of all ETFs by total commerce volume.
Tommy Horan, Head of company Partnerships at Australian exchange Swyftx same that it had been a “pretty subdued launch however VanEck won’t be too troubled. Their [lower] fees ought to attract a gradual rate of inflows over future quarter.
“This was always going to be a bit of a non-event after all the hype around ProShares’ $1.1bn launch and continues the trend we saw with Valkyrie’s ETF.”
Valkyrie’s Bitcoin futures ETF conjointly had a comparatively lackluster launch with BTF dropping third-dimensional in worth within the 1st hour of commerce on October. 22 on information system, despite its $78 million in commerce volume.
Eric Balchunas, senior ETF analyst for Bloomberg instructed during a November. seventeen tweet that XBTF’s commerce volume would unremarkably be pretty smart, however that it's been immensely overshadowed by BITO.
The lower trading volume on XBTF comes within the wake of the SEC rejecting VanEck’s application for a spot Bitcoin ETF. As opposition the futures ETF, a spot ETF would permit investors to achieve exposure to this worth of Bitcoin without having to carry BTC themselves.
Overall, Horan lauded the XBTF launch however says crypto ETFs will not hit their stride till a spot ETF is approved: “It’s nice for the business to examine crypto funds obtaining regulative approval, however till a spot ETF is accepted, no-one goes to be obtaining over their ski tips.”
(Brian Newar, Cointelegraph, 2021)