After a month-long wait, the US Securities & Exchange Commission has approved a significant portion of Spot Bitcoin ETF applications. The effect was so great that on the first day alone, the trading volume for the goods increased. Over $4.5 billion worth of trades were made overall, with BlackRock and Grayscale topping the way.
BlackRock acquired 38 million shares in the trade, while Grayscale recorded 56 million shares being exchanged. The former was valued at $2.3 billion, while the latter was valued at $1 billion. The figures will certainly climb as more goods complete their final registration.
iShares Bitcoin ETF (IBIT) by BlackRock was one of the first to be listed for trading. The first trading day has been dubbed the biggest day-one splash in ETF history by experts. Additionally, the trading volume of the initial Bitcoin Sutures ETF has been likened to it. In October, it brought in around $950 million.
The impact of trading volume is moderate and can be ascribed to the unwinding of futures contracts, according to James Butterfill, Research Head at CoinShares. However, he has stated that it is premature to draw any conclusions.
Unexpectedly, the price of Bitcoin has decreased by 0.21% over the past day, trading at $45,986.84. The fact that it crossed the $47k threshold in terms of money yesterday is one reason why it makes Bitcoin aficionados’ eyes expand. That occurred nearly immediately following the media’s initial reporting on the approval of the Bitcoin ETF.
Given that the value of BTC has increased by 4.99% over the past seven days and 9.72% over the past thirty days, holders are unaffected by the rising value of the coin.
The next topic of discussion is the Ether ETF, where it is expected that Fidelity and BlackRock would take the lead with their separate applications. By the end of this year, Bitcoin’s value is still expected to rise above its ATH. There is a remote chance that the token may increase holders’ holdings by reaching the $100k milestone, provided all other conditions remain same for the next 11 to 12 months.
Hopefully, BTC stays well above $38,000 for the time being. As experts have warned, it is too early to conclude Spot Bitcoin ETF trading volumes. As more applications start to glimpse the light at the end of the tunnel and are listed for trading on approved exchange platforms, the picture will only get clearer.
Republicans in the House have applauded the passage; representatives Hill, McHenry, and Emmer have publicly expressed their happiness with the outcome.
There’s still a chance that bad actors will exploit system vulnerabilities to abuse the product. Analysts have warned that if bad actors take advantage of the chance to manipulate the market and launder money, investors’ money could be at danger. The Commission has acknowledged this and stated that, should any such behaviour come to light, it will look into it.
