BitcoinBTCCryptocurrency EducationIndustry AnalysisNews

BlackRock’s iShares Bitcoin ETF Surges 25% on SEC Approval

2 Mins read

The exciting period has started, after months of mixed reaction on ETF’s approval prospects, pump and dump sessions, and critical warnings it’s a real thing now. In the wake of the Securities and Exchange Commission’s (SEC) greenlight for spot Bitcoin ETFs, BlackRock’s iShares Bitcoin Trust ETF (IBIT) has made an impressive market debut. The ETF experienced a staggering 25% surge in pre-market hours on the Nasdaq, reaching $27.50 from a net asset value (NAV) of $26.12 on the approval date.

BlackRock’s IBIT ETF: A 25% Surge and $2 Billion Inflow

As market expectations point to a substantial inflow of around $4 billion into spot Bitcoin ETFs on the first day, BlackRock’s ETF is predicted to attract nearly $2 billion directly. To enhance its appeal, BlackRock responded to the approval by reducing fees to 0.25% and offering a partial fee waiver for the initial 12 months, resulting in a 0.12% fee structure for the first $5 billion of the Trust’s assets. 

In pre-market trading, IBIT traded $2 million worth of shares, a substantial volume according to Bloomberg’s Eric Balchunas. While this volume is significant for a typical ETF’s first full day, Balchunas notes it may be influenced by BlackRock.

Live Trading and Operational Impact

The BlackRock spot Bitcoin ETF is live on various platforms, including the iShares website, Nasdaq, and 175,000 Aladdin investor platforms. This move is expected to simplify Bitcoin investments, eliminating operational obstacles and burdens, and allowing various investors, from asset managers to financial advisors, direct exposure to Bitcoin.

In addition to BlackRock, Grayscale’s Bitcoin Trust (GBTC) ETF commenced trading during the pre-market as well. Early in the trading day, GBTC stock rose 2%. The New York Stock Exchange lists GBTC. 

Industry Leaders Optimistic

Executives from major fund issuers express optimism about the SEC’s approval of Bitcoin Spot ETFs. Dominik Rohe of BlackRock emphasizes IBIT as a cost-effective and convenient means for investors to access Bitcoin. Other industry leaders, including Matt Hougan (Bitwise), Michael Sonnenshein (Grayscale), Cynthia Lo Bessette (Fidelity), Roger Bayston (Franklin Templeton), and Leah Wald (Valkyrie), share positive sentiments about the potential of regulated investment vehicles and the efficient exposure to Bitcoin offered by these developments. 

Broader Market Sentiments

Despite the recent acceptance of the first Bitcoin ETF, the price of the cryptocurrency stayed stable at around $46,000. Surprisingly, the fake news about ETF approval on January 9 had a bigger impact, briefly raising the price to $48,000. Although the response was not very strong, market experts are optimistic about possible bullish movements as official trading commences. They expect large amounts of capital to flow into these ETFs, which could significantly change the market landscape. At the moment, Bitcoin is selling above $46,500, which shows that investors are cautious but hopefully optimistic.


Source

1409 posts

About author
Harry is a crypto enthusiast and experienced trader with a track record of success. With a deep understanding of blockchain technology, he has analyzed market trends and identified profitable opportunities, resulting in impressive returns. Harry 's expertise lies in developing effective trading strategies that leverage the potential of cryptocurrencies. Through his articles, guides, and educational resources, he shares his insights and knowledge, helping individuals make informed trading decisions. With a keen eye for market patterns, Harry has navigated the volatile crypto landscape with confidence. Stay tuned for valuable perspectives and expert advice from Harry as he contributes to the Ailtra platform.
Articles
Related posts
CryptoNews

Indonesia's presidential elections pose uncertainty for the thriving cryptocurrency industry

1 Mins read
Indonesia, has emerged as a formidable player in the global cryptocurrency space in recent years. However, the nation’s upcoming general elections in…
BNBCryptoNews

Understanding the Cryptocurrency Boom - Dogecoin Climbs Due to X Payment Integration, While Stellar and BNB Also Experience Growth

1 Mins read
The cryptocurrency market has been experiencing notable gains over the past few days. This is led by an unexpected and surprising spike…
CryptoNews

Crypto Entrepreneur Charged with Defrauding Investors Out Of $150 Million Through Marketing Scheme

1 Mins read
Federal prosecutors have charged a German businessman with securities fraud, wire fraud and money laundering for allegedly scamming over 150 investors out…

🚀 Ailtra Crypto Bot Earned $8.9M Million in 7 Months with 0% Loss!

🚀 Ailtra generated $7.4 in 7 months only!

Unlock 20-75% Monthly Returns & Get $100 FREE!

Meet Ailtra Bot! Launching on 31st March an AI Crypto Bot boasting 20%-75% monthly gains and $7.5M earnings in 7 months. 💸Secure a FREE $100 bonus and up to $20K potential via referrals every month. 🎉Only 1,000 spots are available in first phase – claim yours fast! 🔥

Ailtra.ai will not disclose your account information to any 3rd parties.