First Day Performance: A Look at XBTF

The VanEck Bitcoin Strategy ETF (XBTF) debuted on the Chicago Board of Exchange (CBOE) this past Tuesday, wrapping up its inaugural trading day with a commendable yet overshadowed trading volume. Closing the day, XBTF managed to reel in approximately $9.5 million in assets under management (AUM) alongside a daily trading volume of about $4.6 million. While respectable in isolation, this figure is a mere whisper compared to the roar of its predecessor, the ProShares Bitcoin Strategy ETF (BITO), which launched with an astonishing $1 billion in trading volume last October.

Comparing Launches: XBTF vs BITO

When throwing a party, the first guest usually makes a grand entrance armed with glitter and confetti—BITO crashed the scene like a rock star, while XBTF strolled in with a shy wave. BITO not only dominated first-day trading but has also since soared into the top 2% of all ETFs based on trading volume. This can leave XBTF feeling as if it’s trying to dance the tango while sharing the floor with a flamenco master.

Expert Insights: A Steady Flow?

Tommy Horan, who leads corporate partnerships at Swyftx, described XBTF’s launch as “pretty subdued”. He maintains that despite the quieter reception, VanEck’s lower fees should lure in a steady stream of investments in the coming months. With fees that cater to the budget-conscious investor, it appears that patience may reward the VanEck crew as the months roll on.

Market Reactions: A Collective Shrug?

Eric Balchunas, a senior ETF analyst at Bloomberg, chimed in with a reality check via Twitter. He highlighted that XBTF’s trading volume would typically signify a strong launch, landing perhaps in the top 10% of new ETFs this year. However, in the shadow of BITO’s astounding success, it’s like XBTF is attempting high-fives while the rockstar is still basking in the spotlight.

Looking Ahead: The Future of Crypto ETFs

The mood may lean optimistic following XBTF’s launch; however, Horan argues that the real breakthrough for crypto ETFs hinges on the approval of a spot Bitcoin ETF. He stated, “It’s great for the industry to see crypto funds getting regulatory approval, but until a spot ETF is accepted, no one is going to be getting over their ski tips.” Translation? Crypto ETFs may just need that regulatory gold star to truly strut their stuff on the trading floor.