US Bitcoin ETFs garnered $4.6 billion in trading volume after landmark SEC approval, competition for market share fierce

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The United States-listed bitcoin exchange-traded funds (ETFs) saw substantial trading activity, with $4.6 billion worth of shares changing hands by Thursday afternoon, according to LSEG data. This followed the landmark approval by the US securities regulator on January 10, marking a significant moment for the cryptocurrency industry, testing the acceptance of digital assets as investments.

Eleven spot bitcoin ETFs, including BlackRock's iShares Bitcoin Trust, Grayscale Bitcoin Trust, and ARK 21Shares Bitcoin ETF, commenced trading on January 11 morning, leading to a competitive battle for market share, Reuters reported. Notably, Grayscale, BlackRock, and Fidelity dominated trading volumes, as indicated by LSEG data.

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"Trading volumes have been relatively strong for new ETF products," Todd Rosenbluth, strategist at VettaFi told the publication. However, he emphasised that this is a longer-term race beyond a single day's trading.

The US Securities and Exchange Commission's (SEC) approval on January 10 came after a decade-long struggle with the crypto industry. Despite the green light, some executives warned of bitcoin's high-risk nature, and Vanguard, the largest mutual fund provider, stated it had no plans to offer the new spot bitcoin ETFs on its platform.

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SEC Chair Gary Gensler clarified that the approvals were not an endorsement of Bitcoin, describing it as a "speculative, volatile asset."

The ETF launches led to a surge in bitcoin prices, reaching the highest level since December 2021. Bitcoin was last up 0.77 percent at