Bitcoin Spot ETFs Kick Off With $1.6 Billion Trading Volume; Ethereum Spot ETF Anticipation Rises
Summary:
Bitcoin spot ETFs commenced trading on January 11, with an initial volume of $1.6 billion. This followed the US Securities and Exchange Commission's approval of the first Bitcoin spot ETFs. Despite minor hitches, the cryptocurrency community has expressed considerable optimism regarding the event. Future expectations are now focusing on the potential of an ETH spot ETF, with the SEC's decision due on May 23, 2024.
The trading of Bitcoin spot exchange-traded funds (ETFs) officially commenced on January 11, commencing with a phenomenal volume of approximately $1.6 billion mere moments after the opening bell. This progress has followed the U.S. Securities and Exchange Commission's endorsement of the inaugural Bitcoin spot ETFs. Bitcoin ETFs have now initiated trading on platforms like Cboe, NYSE Arca, and Nasdaq. Of the 11 ETFs presently listed, Grayscale (GBTC), Blackrock (IBIT), Fidelity (FBTC), and Ark (ARKB) are at the forefront, with capitalizations around $667.55 million, $475.6 million, $291.1 million, and $117.8 million respectively. Note that ongoing trading volume is subject to change, with certain instances reflecting over $2 billion in volume as transactions are executed and the total volume varies from high to low.
The eagerly anticipated debut of Bitcoin spot ETFs witnessed numerous hitches including false starts, SEC X account breaches, and excessive apparent fear, uncertainty, as well as doubt. On Tuesday, Jan. 9, a purported intrusion into the SEC’s official X (formerly Twitter) account resulted in a false signal that the commission had sanctioned BTC spot ETFs. This misinformation was quickly dismissed when SEC Chairman Gary Gensler and the recuperated SEC account both confirmed that the account had been violated, and no such approval had been granted. However, full approval came on Wednesday, Jan. 10, making the previous day’s saga irrelevant, despite causing a small negative influence on the market.
Presently, the prevalent opinion among the cryptocurrency social media community is overwhelmingly optimistic, with many seeing the introduction of Bitcoin spot ETFs as a historical event. The community is now hopeful about the potential of an ETH spot ETF. In this regard, BlackRock submitted an application for a spot Ether ETF in November 2023. The SEC has until May 23, 2024, to make a decision, and a significant portion of the crypto advocates are anticipating a favorable decision for an ETH ETF due to the successful launch of Bitcoin spot ETFs. Readers are advised to carry out due diligence research before investing as they involve risks. This news should not be viewed as a recommendation or investment counsel.
Published At
1/11/2024 7:25:43 PM
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