Bitcoin spot ETFs trade over $1 billion in the first 30 minutes after launch
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The arrival of Bitcoin’s long-awaited spot ETFs is marked by milestones and growing pains across crypto markets. The new regulated investment vehicles saw explosive demand right out of the gate, along with significant fallout in derivatives markets. Meanwhile, the path toward ETF approval remains cloudy for other assets like XRP.
Specifically, over $1.2 billion worth of shares in the newly launched Bitcoin spot ETFs were traded in the first 30 minutes of launch. Grayscale and BlackRock products led the way, capitalizing on an intense appetite for regulated exposure. However, Bitcoin’s simultaneous Wall Street debut fueled turmoil for traders, with prices whipsawing violently, ultimately leading to $83 million in liquidations on futures markets.
As for other potential ETF candidates, approval for a Ripple spot ETF currently looks doubtful in the eyes of analysts. They cite limitations like Ripple’s ongoing legal battle with the SEC and deficient structural support for XRP, such as the lack of CME futures markets that aided the case for Bitcoin.
Today’s Newsletter
- Bitcoin spot ETFs trade over $1 billion in the first 30 minutes after launch
- Bitcoin’s Wall Street debut ends in tears for futures traders, leads to $83M liquidations
- Ripple spot ETF approval unlikely this year, says Bloomberg analyst
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BITCOIN
Bitcoin spot ETFs trade over $1 billion in the first 30 minutes after launch
The long-awaited Bitcoin spot ETFs have finally launched, opening the floodgates to intense institutional demand. Over $1.2 billion in shares across 11 newly approved Bitcoin ETFs were traded within the first 30 minutes. Grayscale and iShares products led the way, with Grayscale alone seeing over $446 million in traded volume in the initial half-hour.
The staggering early trading volume signals a significant pent-up appetite among investors for regulated crypto exposure. Bloomberg analyst Eric Balchunas noted volumes in the first 20 minutes easily exceeded those from the Bitcoin futures ETF launch last year. The creation/redemption process underpinning ETFs also means these volumes should directly convert into inflows, validating predictions of over $100 billion entering Bitcoin ETFs in 2023. [cryptobriefing]
BITCOIN
Bitcoin’s Wall Street debut ends in tears for futures traders, leads to $83M liquidations
Bitcoin’s long-awaited Wall Street ETF debut fueled extreme price volatility, sparking a rollercoaster ride for traders. Prices rapidly swung from above $49,000 to $45,700 before stabilizing – but not before the wild swings liquidated $83 million in futures bets on both sides. The losses impacted traders profiting from Bitcoin’s listing euphoria and subsequent comedown.
While Bitcoin ETF approval avoided being an outright “sell the news” event, it did stoke confusion and manic speculation. Both leveraged longs and shorts were caught wrongfooted as Bitcoin surged and retreated. Across crypto more broadly, futures liquidations exceeded $230 million despite little overall market movement in the past day – showcasing the risk of attempting to time volatile milestones. [coindesk]
MARKETS
Ripple spot ETF approval is unlikely this year, says Bloomberg analyst
A spot ETF for Ripple launching in 2024 looks unlikely, according to analysts. They cite limitations like Ripple’s ongoing legal battle with the SEC as the main obstacle. The case may not conclude until the final ruling is expected by late April, leaving little runway this year even if resolved in Ripple’s favor.
Bloomberg’s James Seyffart also highlighted the lack of a CME futures market for XRP as another constraint, unlike Bitcoin and Ethereum. He suggested a timeline no earlier than 2025 for a spot Ripple ETF, contingent on the court decision and additional administrative changes. Seyffart clarified that while futures ETFs make approval more likely, they don’t guarantee a spot product – each case must clear its own regulatory hurdles. [cryptobriefing]
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