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Bitcoin ETF investments reach $4.6 billion on first trading day

Bitcoin ETF investments reach $4.6 billion on first trading day

The London Stock Exchange Group (LSEG), a financial data provider, reported that on the first trading day following the U.S. Securities and Exchange Commission (SEC)'s approval, shares of U.S.-registered Bitcoin exchange-traded funds (ETFs) sold for a total of $4.6 billion.

U.S. cryptocurrency market introduced eleven spot Bitcoin ETFs, including iShares Bitcoin Trust by BlackRock, Grayscale Bitcoin Trust, and ARK/21Shares Bitcoin ETF. LSEG's research indicated that Grayscale, BlackRock, and Fidelity's products were the most sought-after among investors.

Todd Rosenbluth, Head of Research at Vetta, commented that trading volumes for these new ETF products were relatively high. However, he noted that this is a long-term event that extends beyond single-day trading.

Despite the SEC's approval of the spot Bitcoin ETF being a significant milestone for the growth of the crypto industry and expected to lead to an influx of new investments into the cryptocurrency market, some companies opposed the launch of this product.

Vanguard, a member of the U.S.'s "big three" investment companies and the largest provider of mutual funds, reported that it does not intend to offer clients access to spot Bitcoin ETFs on its platform.

Gary Gensler, the SEC Chairman, acknowledged his reluctant approval of spot Bitcoin ETFs.

"Investors should remain cautious about the many risks associated with Bitcoin and products whose value is tied to the cryptocurrency," the statement read.

Some analysts speculate that the influx of funds will increase gradually and exceed $10 billion by 2024. Meanwhile, others assert that ETFs could attract between $50 to $100 billion just in this year alone.

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