VanEck to Delist Bitcoin ETF as ProShares Plans for New Ones; Spot BTC ETFs Surge in Daily Volume
Summary:
VanEck plans to delist its Bitcoin futures exchange-traded fund (ETF), less than two years after its launch. On a related note, ProShares is aiming to launch several Bitcoin ETFs with indirect BTC exposure. Recently approved spot Bitcoin ETFs have recorded three times as much daily volume as the collective volume of 500 ETFs launched in 2023. BlackRock's iShares Bitcoin Trust led in attracting net inflows while Grayscale's Bitcoin fund experienced substantial outflows.
VanEck has revealed plans to delist its Bitcoin (BTC) futures exchange-traded fund (ETF), amounting to a closure that comes less than two years after the fund was launched. In unrelated news, ProShares has lodged applications for five ETFs pegged indirectly to BTC. On a day-to-day trading basis, newly approved spot Bitcoin ETFs saw three times as much volume as 500 ETFs given the green light in 2023.
The closure of the futures-based Bitcoin ETF by asset management firm VanEck will be a phased process, with an official announcement made on January 17. The firm stated that shareholders could offload their shares until January 30, while the full delisting is planned for February 6. While the firm did not divulge reasons for the closure, it indicated the decision resulted from routine monitoring of ETF performance and liquidity, alongside the recent approval of a slew of spot Bitcoin ETFs.
As part of its push for spot ETF market presence, VanEck has committed 5% of its profits to Bitcoin blockchain core developers.
ProShares, a leading exchange-traded funds issuer in the United States, is working on rolling out multiple Bitcoin ETFs featuring indirect BTC exposure. This development dovetails with the initial period of spot Bitcoin ETF trading on local exchanges.
One the day of January 16, the combined trading volume of the 10 currently operational spot Bitcoin ETFs exceeded three times the collective volume of 500 ETFs kicked off in 2023. The overall volume for recently greenlit spot Bitcoin ETFs topped $1.8 billion on January 16, with funds delivered by Grayscale, BlackRock, and Fidelity totaling $1.6 billion.
The collective volume posted by these funds triply surpassed the $450 million combined volume seen by 500 ETFs launched in the US in 2023.
BlackRock's iShares Bitcoin Trust led the pack in net inflows, snatching up over $497 million in just three days. The 10 funds all together saw almost $10 billion in volume in the first three trading days. While Grayscale's Bitcoin fund was the leader in total trading volume, pulling in more than $5.1 billion, the fund experienced considerable outflows due to investors' efforts to decrease exposure after the fund's discount fell to a near three-year low.
Investors should always thoroughly research any potential trade or investment, given the inherent risks involved. No investment advice or recommendations are provided in this article.
Published At
1/17/2024 11:36:04 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.