Spot Bitcoin ETF shines on the first trading day

The US Securities & Exchange Commission has ended a month-long wait by approving a major share of Spot Bitcoin ETF applications. The impact was such that the product witnessed an accelerated trading volume on the first day itself. Overall, the trading volume was above $4.5 billion, with BlackRock and Grayscale leading the pack.

Grayscale registered 56 million shares being traded, while BlackRock bagged 38 million shares in the trade. The valuation came to $2.3 billion for the former and $1 billion for the latter. The numbers will likely increase as more products complete their final registration.

BlackRock’s iShares Bitcoin ETF (IBIT) was among the first to get listed for trading. Experts have coined the first trading day as the biggest day-one splash in ETF history. It has also been compared to the trading volume for the first Bitcoin Sutures ETF. It saw roughly $950 million in October.

James Butterfill, the Research Head of CoinShares, has said that it is too early to conclude trading volume, adding that the impact was moderate, which can be attributed to the unwinding of futures positions.

Surprisingly, the value of BTC has fallen in the last 24 hours by 0.21%, currently exchanging hands at $45,986.84. A reason why it widens the eyes of BTC enthusiasts is that it monetarily surpassed the mark of $47k yesterday. That was almost after the updates about Bitcoin ETF approval started coming on the media surface.

Holders are intact amid the rising value of BTC, considering the token has jumped by 4.99% in the last 7 days and 9.72% in the last 30 days.

The next speculation is around the Ether ETF, with BlackRock and Fidelity likely to lead the charge with their respective applications. Bitcoin’s value is still poised to surpass its ATH by the end of this year. Assuming all factors align for the next 11–12 months, there is a slight possibility that the token may expand holders’ portfolios by touching the milestone of $100k.

For now, hopes are that BTC stays well above $38k. As experts have said, it is too early to conclude Spot Bitcoin ETF trading volumes. The picture will only become clearer as more applications see the end of the tunnel and get listed on registered exchange platforms for trading.

House Republicans have praised the approval, with Reps. Hill, McHenry, and Emmer came out in public to express their satisfaction with the development.

There remains a hint about malicious actors potentially finding flaws in the system to misuse the product. Analysts have said that investors’ funds may be put at risk if malicious actors end up using the opportunity for money laundering and market manipulation. The Commission has taken cognizance of this and said it will investigate any such activity if it comes to attention.