First Spot Bitcoin ETF in USA Trades Higher
11 Jan, 2024 ● Crypto News
The first-ever spot Bitcoin exchange-traded fund (ETF) in the United States has commenced pre-market trading, a day after receiving approval from the U.S. Securities and Exchange Commission (SEC).
BlackRock's iShares Bitcoin Trust, represented by the ticker symbol IBIT, has initiated pre-market trading and is currently experiencing a 22.25% increase, with a trading price of $26.81. The iShares trust is listed on the Nasdaq exchange.
As of the time of writing, IBIT has seen substantial trading activity in the pre-market, amounting to $2 million worth of shares, as highlighted by Bloomberg senior ETF analyst Eric Balchunas.
He noted that such high volume would typically be considered a strong first full day for an average ETF. However, he also cautioned that this initial volume may be influenced by BlackRock.
In addition to BlackRock's IBIT, Grayscale's Bitcoin Trust (GBTC) ETF has also commenced pre-market trading.
GBTC shares showed a 2% increase during pre-market trading hours, and GBTC is listed on the New York Stock Exchange.
Pre-market trading involves the buying and selling of assets before the regular market trading hours begin. Typically, pre-market trading occurs between 8:00 am and 9:30 am Eastern Time.
Traders often use pre-market movements to assess how markets may perform after the opening bell.
The SEC's landmark decision approved the 19b-4 applications submitted by ARK 21 Shares, Invesco Galaxy, VanEck, WisdomTree, Fidelity, Valkyrie, BlackRock, Grayscale, Bitwise, Hashdex, and Franklin Templeton.
This approval allows their spot Bitcoin ETFs to be listed and traded on various public exchanges.
The official trading for all 11 approved spot Bitcoin ETFs is scheduled to begin when the markets open on January 11.
However, pre-market trading data is showing bullish signs for this new regulated investment product for U.S. investors.
Bitcoin's price did not exhibit a significant reaction to the official approval of the first-ever spot Bitcoin ETF, maintaining a trading level around $46,000 before and after the approval.
Some crypto enthusiasts noted that Bitcoin's price reacted more strongly to the fake ETF approval news on January 9, briefly surging to as high as $48,000.
Nonetheless, market analysts anticipate that the price may experience more bullish momentum with the official start of trading, as they expect billions of dollars to flow into these ETFs.
At the time of this writing, Bitcoin is trading above $46,500, with just a few hours remaining before regular trading commences.
Sources:
https://finance.yahoo.com/quote/IBIT/?guccounter=1
https://finance.yahoo.com/quote/GBTC/?p=GBTC
https://coinmarketcap.com/currencies/bitcoin/
https://twitter.com/EricBalchunas/status/1745404645336301810
