In Brief:
- VanEck ETFs shares ended the day around $59.73, with a trading volume of 44,698 shares.
- It traded on Chicago-based CBOE exchange Tuesday after weeks of delays.
Investment firm VanEck’s Bitcoin futures exchange-traded fund (ETF) gets a cold response on the first day of its trading on the Chicago-based CBOE exchange Tuesday after weeks of delays, as per a report by Bloomberg
The first day reception for started trading on the Chicago-based CBOE exchange Tuesday after weeks of delays, but the first-day reception looked quite bland compared to the launches of similar funds that took place last month.
Senior ETF analyst at Bloomberg, Eric Balchunas, pointed out in a tweet that “XBTF’s trading volume would normally be pretty good, but it has been vastly overshadowed by BITO”.
This could be a legitimate reason as the VanEck ETF (stock ticker XBTF) was introduced to roughly track the price of bitcoin but managed to attract just a fraction of the trading volume which was witnessed when the ProShares Bitcoin Strategy ETF went live on Oct. 19.
Hence, VanEck ETFs shares ended the day around $59.73, with a trading volume of 44,698 shares, or about $4.8 million in dollar terms. On the other hand, the ProShares ETF (BITO) hit a trading volume of about $1 billion by the end of its first day.
Tommy Horan, Head of Corporate Partnerships at Australian exchange Swyftx said that it had been a “pretty subdued launch but VanEck won’t be too worried. Their [lower] fees should attract a steady rate of inflows over the next quarter.” He added, “This was always going to be a bit of a non-event after all the hype around ProShares’ $1.1bn launch and continues the trend we saw with Valkyrie’s ETF.”
Not just VanEck but Valkyrie’s Bitcoin futures ETF, too, had a fairly uninspiring launch with BTF dropping 3% in price in the first hour of trading on October 22 on Nasdaq. Nevertheless, its trading volume was $78 million.
VanEck has been in the news quite a lot of late. The lower trading volume on VanEck’s XBTF can be attributed to the SEC rejecting VanEck’s application for a spot Bitcoin ETF just before its launch.
