Key Takeaways
- BlackRock's iShares Bitcoin Trust (IBIT) launched in the US pre-market, surging by 22.25%.
- The US SEC approved 11 spot Bitcoin ETFs, with all set to begin trading on January 11th.
- Bitcoin's price remained steady at around $46,000 despite the significant development of the first US Bitcoin spot ETF.
The launch of the United States' first-ever Bitcoin Spot Exchange-Traded Fund (ETF) marks a significant milestone in cryptocurrency investment.
The ETF, BlackRock's iShares Bitcoin Trust (IBIT), began its journey in the pre-market trading phase a day following its green light from the US Securities and Exchange Commission (SEC).
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The ETF, listed on the Nasdaq exchange under the ticker IBIT, showed impressive early performance, soaring by 22.25% to trade at $26.81.
This early trading phase saw IBIT move a substantial $2 million in shares, which was emphasized by Bloomberg's senior ETF analyst Eric Balchunas. Balchunas pointed out that such volume would ordinarily be celebrated for a full first day of an average ETF. However, he suggested that BlackRock might be a driving force behind this initial surge.
In parallel, Grayscale's Bitcoin Trust (GBTC) ETF, listed on the New York Stock Exchange, also engaged in pre-market trading. GBTC experienced a 2% increase during these early hours.
The SEC's decision to approve the 19b-4 applications for ARK 21 Shares, Invesco Galaxy, VanEck, WisdomTree, Fidelity, Valkyrie, BlackRock, Grayscale, Bitwise, Hashdex, and Franklin Templeton was groundbreaking. This decision paves the way for their spot Bitcoin ETFs to be listed and traded on various public exchanges.
Despite the significant development, Bitcoin's price remained relatively stable, hovering around the $46,000 mark before and after the ETF's approval.
This muted reaction contrasted sharply with the cryptocurrency's response to the erroneous ETF approval news on January 9th, which saw its price spike to $48,000. Market analysts speculate that Bitcoin's price could see a bullish turn with the onset of official trading, as substantial capital inflows into these ETFs are anticipated.
In a landmark event for US financial markets, BlackRock's launch of the first Bitcoin spot ETF marks a major step forward in cryptocurrency investment, with significant pre-market gains hinting at a potentially transformative impact on the crypto landscape.
