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"BITO" Makes History on Opening Day with $440 Million Trading Volume in the First Hour, Grayscale Officially Submits "Spot ETF" Application

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"BITO" Makes History on Opening Day with $440 Million Trading Volume in the First Hour, Grayscale Officially Submits "Spot ETF" Application

Grayscale, previously rumored to launch a Bitcoin spot ETF, has officially submitted the 19b-4 document. Additionally, its CEO mentioned in a recent interview that many believe "spot ETFs" are more suitable for Bitcoin. The Bitcoin futures ETF, "BITO," saw a trading volume of $440 million within the first hour of trading on its debut day.

With the first Bitcoin futures ETF in the U.S. now listed, ProShares CEO Michael Sapir and NYSE's Head of Product Douglas Yones have both responded positively. Douglas Yones stated:

This is an exciting start, not the end. I anticipate a series of ETFs linked to cryptocurrencies will eventually be approved, and the official launch of ETFs signifies the move towards mainstream compliance for cryptocurrencies.

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Amid the boiling market sentiment, there are increasing voices suggesting that "futures ETFs are even more disadvantageous for retail investors." In response to this, Grayscale, the most commonly compared and highest market share closed-end fund, shared its CEO's perspective during an interview.



ETF Attracts More Funds to Bitcoin

Bitcoin Milestone

Sonnenshein believes this is a very important week for Bitcoin and all crypto assets, something investors have been waiting for, and one of the reasons that helped push Bitcoin closer to its all-time high.

Spot ETF

He still believes that the SEC will eventually approve a Bitcoin spot ETF, as futures and spot prices always influence each other. This is further validation for the crypto industry. He mentioned that Grayscale, after several years of preparation, is ready to convert GBTC into an ETF, providing investors with another option.

ETF vs. GBTC

Previous reports indicated that despite the fees of GBTC being less than 2%, around 0.95%, the implied roll costs of a futures ETF, in the case of long-term holding, end up being much higher in cost compared to GBTC. Sonnenshein pointed out:

The market is excited about a Bitcoin ETF listing on a national securities exchange. However, understanding the structure of a futures ETF will help investors realize the impact this product will have. It's still too early to say anything now, but I believe investors should be able to freely choose between a futures or spot Bitcoin ETF.

He gave an example that Bitcoin is easier to custody and store compared to gold and oil, therefore trading Bitcoin in a spot manner while trading gold and oil in a futures manner makes more sense.

Defending GBTC

When asked about the impact on Grayscale, Sonnenshein stated:

Investors choose GBTC because it is the world's largest Bitcoin fund, representing 3.5% of the total circulation, and has been operating successfully for eight years. This proves that a fund based on spot is what investors want. However, I believe holding both futures and spot products is the healthiest situation for the ecosystem.

Regarding the issue of high fees, he emphasized that once converted into an ETF, Grayscale is prepared to lower costs at any time. As more related products emerge in the future, there will be competitive pressures.

It can be seen from an earlier interview that Sonnenshein continuously emphasized the advantages of a Bitcoin spot ETF, and Grayscale subsequently released a press release, having submitted a 19b-4 document through NYSE Arca.

In addition, according to data provided by Bloomberg ETF analyst James Seyffart, the Bitcoin futures ETF "BITO" reached a trading volume of $440 million within the first hour of trading, surpassing the "VanEck Vectors Social Sentiment ETF BUZZ" that emerged earlier this year due to the GME event driven by retail investors.