Spot Bitcoin ETF Trading Begins: High Volume and Market Interest Mark Historic Launch
Summary:
Following approval by the U.S. Securities and Exchange Commission, the first-ever spot Bitcoin ETF has begun trading. Bitcoin ETFs such as BlackRock's iShares Bitcoin Trust (IBIT) and Grayscale Bitcoin Trust (GBTC) experienced a high trading volume immediately after launch. GBTC was the most dominant, accounting for 40% of the total volume, crossing the $1 billion mark within the first two hours. Trading conglomerate, TradingView, has also integrated support for spot Bitcoin ETFs. Market analysts will closely observe the correlation between the Bitcoin ETFs' performance and the Bitcoin price.
The much-anticipated inauguration of the first-ever spot Bitcoin ETF has finally taken place, made possible by the approval of the U.S. Securities and Exchange Commission on January 10. The ETF started trading in less than 24 hours after the opening bell. Among the ETFs that began trading are BlackRock's iShares Bitcoin Trust (IBIT), Grayscale Bitcoin Trust (GBTC), Valkyrie Bitcoin Fund (BRRR), Bitwise (BITB), and ARK 21Shares Bitcoin ETF. From the onset, there was a high influx of trading volume. Bloomberg Bitcoin ETF analysts highlighted this by expressing their surprise at over half a billion being traded in the group just 20 minutes into trading and outpacing $BITO by substantial amounts, led by $IBIT and $FBTC.
Trader interest was confirmed in the initial trading waves, as the Grayscale Bitcoin Trust saw a near 6% rise, and the iShares Bitcoin Trust made an over 4% leap. The GBTC demonstrated significant dominance, representing "40% of the total volume," crossing the $1 billion mark within the first two hours.
The conversion of the Grayscale fund from an over-the-counter trust was significant, swelling its assets to over $28 billion. The Hashdex fund altered its strategy from an existing Bitcoin futures ETF, as evidenced in SEC filings, readying for the new era of investments in the largest cryptocurrency by market capitalization without the direct risk of holding the digital token.
The popular charting platform TradingView has integrated support for spot Bitcoin ETFs with the issuers' price tickers. This addition facilitates convenient tracking and analysis of ETF performance by traders.
As the spot Bitcoin ETFs kick-started, cryptocurrency prices began a steady ascent. Bitcoin (BTC), in particular, surged by 2.7% on the day, even peaking at over $49,000 briefly. The total crypto market capitalization rose 3.57% over 24 hours to reach $1.76 trillion.
Market enthusiasts will keenly monitor the performance of the Bitcoin ETFs and their correlation with BTC's price. A lingering negative correlation between a fund's price and its underlying assets could deter potential buyers, marking possible thin trading or structural issues with the ETF, despite possible temporary Bitcoin outperformance.
It's vital to remember that this article does not offer investment advice or recommendations. All investment or trading decisions carry inherent risks, so individuals should carry out their own thorough research before making any decisions.
Published At
1/11/2024 9:06:56 PM
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