BTC Price Rises as First Spot Bitcoin ETFs Begin Trading
Bitcoin’s price experienced a surge on Thursday as the first spot bitcoin ETFs were approved by the Securities and Exchange Commission (SEC) and began trading in the U.S. The world’s largest cryptocurrency saw a 5.5% increase, reaching $47,791 at 9:30 a.m.
BlackRock’s IBIT and Grayscale’s GBTC Trending
According to Yahoo Finance, both BlackRock’s IBIT and Grayscale’s GBTC were trending tickers. While the focus has been on bitcoin, analysts believe that ETFs are showing their ability to handle various market conditions.
High Expectations for Volumes
All eyes are now on the trading volumes of these new ETFs. Valkyrie co-founder and CIO Steven McClurg expects investments of $200 million to $400 million in Valkyrie’s ETF alone, with an estimated $4 billion to $5 billion of inflows across all participants in the first few weeks. VanEck predicts $1 billion of funds flowing into these products within the first days, and Galaxy anticipates inflows of $14 billion within the first year.
Potential Market Growth for Spot Bitcoin ETFs
Bitwise projects that the market for spot bitcoin ETFs could reach approximately $72 billion within five years.
About Author
Nathan Crooks is the U.S managing editor at The Block. He previously worked at Bloomberg News for 12 years, covering major news events and holding various editorial roles. He has extensive experience in reporting on cryptocurrencies and other financial topics.
Hot Take: Bitcoin ETF Approval Fuels Optimism for Crypto Market
The approval of the first spot bitcoin ETFs by the SEC has sparked optimism in the crypto market. This development demonstrates the growing acceptance and mainstream adoption of cryptocurrencies. With more investors gaining access to bitcoin through ETFs, it is expected that trading volumes will increase significantly. The initial inflows into these ETFs are projected to be substantial, with estimates ranging from billions to tens of billions of dollars. As the market for spot bitcoin ETFs expands, it has the potential to attract even more institutional and retail investors, contributing to the overall growth and maturation of the cryptocurrency industry.
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