The Securities and Exchange Commission (SEC) of the United States approved 11 Bitcoin spot ETFs on January 10. The recently listed funds started trading on January 11 amid price discovery and volatility.
In particular, the cryptocurrency market turned its eyes to the iShares Bitcoin Trust (NASDAQ: IBIT) by BlackRock Inc. (NYSE: BLK). This was given to the relevance of the financial giant and largest global asset manager. The company has been actively investing in Bitcoin-related companies in recent months.
Notably, IBIT’s price discovery started in the pre-market, fuelling Bitcoin (BTC) investors’ enthusiasm with initially positive results.
BlackRock’s Bitcoin ETF analysis
However, the scenario quickly changed for BlackRock’s Bitcoin ETF, as observed in the 5-minute price chart. Opening at $28.05 per share on its first public trading day, IBIT is losing over 4% at $26.89.
In the meantime, it reached a daily high of $29.63 and a daily low of $26.28 per share. This results in a 24-hour volatility of $3.35 — or superior to 11% of its opening price. Interestingly, the highest price occurred in the first 25 minutes of the open market.
Nevertheless, more than two hours remain before the market closes on BlackRock’s Bitcoin ETF’s first day. Considering the volatility seen so far, IBIT may achieve a positive trading day.
Most ETFs have followed a similar pattern, slightly correlated to Bitcoin’s price in the spot market, as expected. BTC reached multi-year highs today at $48,965, immediately retracing to the $46,500 price zone as of writing.
It is important to understand that this performance surprised Bitcoin investors. The cryptocurrency market eagerly awaited institutional investors’ capital deployment following the ETFs’ approval by the SEC. Now, the entire world turns its eyes to these financial products, curious about the still uncertain outcome.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
Source: https://finbold.com/this-is-how-blackrocks-bitcoin-spot-etf-is-trading-on-its-first-day/