Analyst: This is the most successful launch in ETF history

Trading volume in BTC-ETF shares exceeded $4.5 billion on the very first day. Crypto enthusiasts see the approval of spot funds as the final step for the industry to finally move into the mainstream. Community members believe that digital assets will soon attract ordinary investors.

“Here’s the 25 most successful ETF launches of all time and you can see BlackRock dominates top 10. This is lined up cash (not organic) hence why I say “on brand” this is what they do,” said Eric Balchunas, senior ETF analyst at Bloomberg Intelligence.

Amid the general excitement, the Bitcoin rate at one point rose above $49,000, that is, to a level last recorded in 2021. However, BTC then dropped to $46,200.

Interest in Bitcoin-based ETFs from financial market players is also growing. Robinhood CEO Vlad Tenev said the company intends to “list” spot funds for the main cryptocurrency “as soon as possible.” And Charles Schwab founder Charles Schwab has already made ETFs available on his own platform.

“What an ETF represents for bitcoin adoption extends beyond the immediate inflows into these products, potentially reshaping the market in entirely unprecedented ways. Nevertheless, we think this will take time to unfold,” Coinbase Global Inc. analysts noted.

Experts also point out that commission wars are quite common in the ETF industry. However, the struggle for investors among the leading players in this area began before the launch of the tools themselves. Companies cut prices even before their applications were approved.

“It’s like two years worth of fee wars have been condensed into a couple days,” said Eric Balchunas.

Bitwise, ARK and WisdomTree waived fees for the first six months. IShares decided to reduce the commission for the first 12 months. Valkyrie limited it to three months, and Fidelity won’t charge fees until the end of July this year.

Galaxy Digital’s Steve Kurtz, whose company also launched an ETF with Invesco, said fees won’t be a deciding factor for investors.

“What’s the point of talking about multiple basis points of fees when you’re managing the liquidity of a highly volatile underlying asset?” said Global Head of Asset Management at Galaxy Digital.