Bitcoin’s First Ever Spot ETF Roars During Pre-Market Trading

• Wall Street has witnessed a groundbreaking shift with the debut of spot Bitcoin ETFs.
• BlackRock’s iShares Bitcoin Trust (IBIT) has taken center stage in pre-market trading.
• Regulatory approval for 11 spot BTC ETFs has created excitement in the financial landscape.

A new era for Bitcoin dawned on Wall Street as the first-ever spot Bitcoin exchange-traded funds (ETFs) began trading pre-market on Thursday, a day after securing regulatory approval . In a sign of pent-up demand, BlackRock’s iShares Bitcoin Trust (IBIT) surged 25% before the official market open, trading at $27.40.

Wall Street Welcomes Bitcoin

This historic debut marks a watershed moment for cryptocurrency, granting US investors a regulated and familiar avenue to gain exposure to Bitcoin. The approval follows years of anticipation and uncertainty, with the Securities and Exchange Commission (SEC) previously rejecting applications for similar products. 

Now, with 11 spot BTC ETFs greenlit , a wave of excitement is washing over the financial landscape. IBIT, listed on the Nasdaq , saw impressive pre-market activity, trading $2 million worth of shares. 

Bloomberg senior ETF analyst Eric Balchunas noted the significant volume, qualifying it as a strong start for any traditional ETF. However, he also cautioned that BlackRock’s involvement might skew the initial numbers.

Bitcoin Unfazed After ETF Approval

Meanwhile, Grayscale’s Bitcoin Trust (GBTC) ETF , listed on the NYSE, saw a more modest 2% increase during pre-market hours. While less dramatic than IBIT’s performance, it still underscores the broader enthusiasm for regulated Bitcoin investment options.

It’s worth noting that the Bitcoin price itself didn’t exhibit a major reaction to the official ETF approval, hovering around the $46,000 mark. Interestingly, some crypto enthusiasts observed a more pronounced price jump on Jan. 9th, when a false rumor of ETF approval briefly sent Bitcoin soaring to $48,000. This suggests that anticipation may have already been priced into the market.

On the Flipside

• While IBIT stole the spotlight with a substantial 22.25% surge, this surge has occurred in the pre-market, where trading conditions can represent the broader market sentiment less.
• In contrast to IBIT’s more pronounced surge, Grayscale’s Bitcoin Trust (GBTC) ETF experienced a modest 2% increase during pre-market hours.

Why This Matters

The commencement of trading for the first-ever Bitcoin Spot ETF marks a historic milestone for the cryptocurrency realm. This groundbreaking event signifies a regulated gateway for U.S. investors to access Bitcoin. It lays the foundation for a new era of legitimacy and mainstream acceptance for the entire cryptocurrency market.

To delve into the SEC’s pivotal approval of spot Bitcoin ETFs and its implications, check out:
Breaking: SEC Finally Approves All Spot Bitcoin ETFs

Curious about what lies ahead for Bitcoin post-ETF approval? Uncover the details here:
What’s Next for Bitcoin Now that ETFs Have Been Approved?