In their first day of trading, spot Bitcoin exchange-traded funds (ETFs) in the United States saw $4.6 billion in trading volume as investors took advantage of these products that had so far been rejected by the Securities and Exchange Commission (SEC).

Asset manager Vanguard’s decision to exclude spot Bitcoin ETFs from its platform has led to a shift among some of its customers, who are now threatening to close their accounts over it.

The issuer of the popular USDC stablecoin, Circle Internet Financial, has recently filed to go public after filing a confidential draft S-1 document with the U.S. Securities and Exchange Commission.

Top stories in the Crypto Roundup today:

• Spot Bitcoin ETFs Debut With $4.6 Billion in Trading Volume
• Vanguard Refuses to Offer Bitcoin ETFs, Angering Clients
• USDC Issuer Circle Eyes Initial Public Offering
• CME Derivatives Volumes Reach Highest Level Since Nov 2021

Spot Bitcoin ETFs Debut With $4.6 Billion in Trading Volume

In their first day of trading, spot Bitcoin exchange-traded funds (ETFs) in the United States saw $4.6 billion in trading volume as investors took advantage of these products that had so far been rejected by the SEC.

A total of 11 spot Bitcoin ETFs were approved yesterday in a historic move, with some being launched by major asset managers, including BlackRock’s iShares Bitcoin Trust, ARK 21 Shares Bitcoin ETF, and Grayscale’s conversion of its GBTC trust into an ETF.

Leading the pack in trading volumes were Grayscale, BlackRock, and Fidelity. Some industry players, however, aren’t embracing spot Bitcoin ETFs, with the largest provider of mutual funds Vanguard saying it had no plans to support Bitcoin ETFs.

The SEC's green light for these ETFs comes after a history of rejections over concerns for investor protection. At the time of the approval, SEC Chair Gary Gensler said the regulator “did not approve or endorse Bitcoin,” and added investors “should remain cautious about the myriad risks associated with Bitcoin and products whose value is tied to crypto.”

The launch of these ETFs sparked a fierce battle among issuers to capture market share, leading some to significantly reduce their fees. These fees now range between 0.2% to 1.5%, with several firms offering temporary waivers or reductions.

Vanguard Refuses to Offer Bitcoin ETFs

Asset manager Vanguard’s decision to exclude spot Bitcoin ETFs from its platform has led to a shift among some of its customers, who are now threatening to close their accounts over it.

According to the Wall Street Journal, Vanguard has said it won’t be offering spot Bitcoin ETFs to its clients as these don’t align with its offerings, which are focused on “asset classes such as equities, bonds, and cash.” Vanguard views these as the “building blocks of a well-balanced, long-term investment portfolio.”

This move by Vanguard, who did not apply to issue a spot Bitcoin ETF in 2023, has prompted certain investors to reconsider their platform choices, with some claiming they will be converting their Roth 401(k) savings from Vanguard to other asset managers.

Clients of other investment firms like Citi, Merrill Lynch, Edward Jones, and UBS have also reported challenges in accessing spot Bitcoin ETFs through these platforms. UBS is said to be considering “unsolicited offers” for these ETFs and evaluating them on a case-by-case basis as it’s only suitable for “aggressive investors,” according to the firm.

A Citi spokesperson has said that a spot Bitcoin ETF is available for its institutional clients, while Merril Lynch is said to be waiting to see whether these funds trade efficiently before offering them.

USDC Issuer Circle Eyes Initial Public Offering

The issuer of the popular USDC stablecoin, Circle Internet Financial, has recently filed to go public after filing a confidential draft S-1 document with the U.S. Securities and Exchange Commission.

The number of shares Circle would offer and their price at the potential initial public offering (IPO) has not yet been determined. The move comes a day after the SEC approved several spot Bitcoin ETFs, bringing heightened attention to the space.

USDC, ranking as the world's second-largest stablecoin, boasts a market capitalization of approximately $25 billion behind Tether, which has a market capitalization of $95 billion. Its revenue comes from the yield generated by the cash and cash equivalents backing the stablecoin.

Previously, Circle had plans to go public through a special purpose acquisition company (SPAC) in 2021, eyeing a valuation of $9 billion in February 2022. However, according to CEO Jeremy Allaire, the deal didn't materialize as the firm didn’t meet the SEC’s “qualification in time.” Circle laid off a portion of its workforce last year during the bear market.

CME Derivatives Volumes Reach Highest Level Since Nov 2021

Trading volume on the CME exchange saw a notable surge in December, with derivatives trading volume climbing by 3.35% to reach $70.2 billion, the highest since November 2021.

BTC futures experienced a modest increase of 1.09%, totaling $52 billion, while ETH futures grew by 3.20% to $14.3 billion. Significantly, the trading volume for BTC Options skyrocketed by 85.9% to $2.24 billion as investors strategically hedged their positions for the spot Bitcoin ETF decision.

Dig deeper into the world of cryptocurrency trading with CCData’s latest Exchange Review report.

State of the Crypto by Top Tier Exchange Volume

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