A third Bitcoin Futures exchange-traded fund (ETF) has entered the US market.

The VanEck Bitcoin Target ETF (XBTF) launched on Tuesday, about a month after ProShare’s Bitcoin ETF (BITO) became the first to debut in the US.

BITO’s launch saw record-setting demand by amassing $1.1 billion in just two days, the fastest an ETF has ever done so. However, since then, the pace of its growth has cooled off as its assets remained between $1.3 billion and $1.4 billion in the past several weeks.

Three days after BITO’s launch, Valkyrie’s Bitcoin Futures ETF (BTF) also made its debut and has accumulated just $60 million.

Now, VanEck’s Bitcoin Fund has been launched at a time when the market is experiencing some volatility, with Bitcoin down 12.3% from its all-time high of $69,000 a week back. On Tuesday, Bitcoin’s price fell as low as $58,570 but is currently above $60k.

Since mid-October, Bitcoin has slipped 5.7% while the BITO shares slumped even more by 7.7% because the fund must continually roll forward its future exposure as the contracts aspire and pays a fee to do so.

On its first day, XBTF saw 38,398 shares trading, ending the day at $59.73 per share, a bit below its opening price of $60 per share.

According to VanEck, the ETF has $9.6 million assets under management. While “normally that would be pretty good,” its launch is shadowed by the massive demand seen by BITO at $1 billion on its opening day and even BTF, which did $78 million, said Eric Balchunas, a senior ETF analyst for Bloomberg.

However, the new VanEck ETF carries a lower fee at 0.65% than the other two funds, both of which have a 0.95% fee, which can help its demand.

“It has its work cut out for it. Low fee will help but not in near term. I do see it being successful, but it will take some time,” Balchunas said.

Last week, the SEC rejected VanEck’s attempt to launch a spot Bitcoin ETF, which is seen as superior to Futures ETF as it will directly invest in the cryptocurrency.

The post XBTF Dips Amidst Market Turbulence, 3rd Bitcoin Futures ETF Launches with Lowest Fee But Fails to Gain Traction first appeared on BitcoinExchangeGuide.

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