Spot Bitcoin ETF outperforms mainstream rivals with 54% increase
Spot Bitcoin ETF has outperformed many traditional Exchange Traded Fund products, with a 54% increase Year-to-Date (YTD).
US Bitcoin ETF Launch Improves Market Outlook
ETFStore President Nate Geraci outlined several ETFs along with their YTD performance earlier today. Looking at the list including Bitcoin (BTC), S&P 500 and US bonds, it was seen that BTC increased by 54% since January. Compared to BTC, Gold is up 13% YTD, the S&P 500 is up 11%; U.S. Treasuries and 20-year Treasuries fell 2% and 7%, respectively.
A significant percentage of this increase can be attributed to the launch and adoption of the spot Bitcoin ETF product in the US earlier this year. The Securities and Exchange Commission (SEC) green-lighted the offering in January, marking the beginning of a major market move.
Issuers of the new ETF product included leading investment management firms such as BlackRock, Fidelity Investments, Grayscale Investments, WisdomTree, Bitwise and Cathie Wood’s ARK Invest in collaboration with 21Shares. The Bitcoin ETF launch has brought a high level of excitement to the crypto market, with many investors diving in to get a share of the market.
Spot Bitcoin ETFs recorded over $4.6 billion in trading volume from 700,000 individual transactions executed on the first day of trading. Senior Bloomberg ETF analyst Eric Balchunas noted that this was the “biggest first-day jump in ETF history.” “No matter how you look, this is beyond expectations.”
On the third day, 11 spot Bitcoin ETFs approved by the securities regulator jumped to $10 billion in trading volume. The days that followed also brought impressive results as more traditional institutional investors put their funds into the crypto ETF.
Bitcoin price soon rose to an all-time high of over $73,000. This bullish sentiment has once again attracted investors to join the Bitcoin ETF movement.
Crypto Ecosystem Awaits Spot Ethereum ETF Launch
There have been some negative days in the US Bitcoin ETF market lately, with more outflows than inflows. In April alone, spot Bitcoin ETFs outflowed more than $344 million, creating a gloomy atmosphere in the market. The last few days have come with a slight recovery for the Bitcoin ETF market. But New York Stock Exchange (NYSE) Group President Lynn Martin recognizes the liquidity the offering brings to the market.
The next step for the crypto ecosystem is to launch the Ethereum ETF. The approval was granted by the SEC, but issuers must receive approval for updated S-1 filings before they can begin trading.
Read More: El Salvador President Nayib Bukele Begins Second Term to Lead Bitcoin Adoption
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Benjamin Godfrey is a blockchain enthusiast and journalist who enjoys writing about real-life applications of blockchain technology and innovations to ensure mainstream acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain-based media and sites. Benjamin Godfrey is a lover of sports and agriculture. follow him excitementLinkedIn
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