The first-ever spot Bitcoin exchange-traded fund (ETF) in the United States has commenced trading in the pre-market after receiving approval from the U.S. Securities and Exchange Commission (SEC).
BlackRock’s iShares Bitcoin Trust, identified by the ticker symbol IBIT, has initiated pre-market trading and is currently up by 22.25%, trading at $26.81. This trust is listed on the Nasdaq exchange.
As of the current moment, IBIT has seen significant pre-market trading activity, with $2 million worth of shares traded, according to Bloomberg senior ETF analyst Eric Balchunas. He noted that such a high volume would be considered a great first full day for an average ETF but cautioned that this initial volume may be influenced by BlackRock.
In addition to BlackRock, Grayscale’s Bitcoin Trust (GBTC) ETF also began pre-market trading, with GBTC shares showing a 2% increase during the pre-market trading hours. GBTC is listed on the New York Stock Exchange.
Pre-market trading takes place before regular market trading hours begin, typically between 8:00 am and 9:30 am Eastern Time. Traders often use pre-market movements to gauge how markets might perform after the official opening.
The SEC’s historic approval included 19b-4 applications from various firms, including ARK 21 Shares, Invesco Galaxy, VanEck, WisdomTree, Fidelity, Valkyrie, BlackRock, Grayscale, Bitwise, Hashdex, and Franklin Templeton, allowing their spot Bitcoin ETFs to be listed and traded on public exchanges.
The official trading for all 11 approved spot Bitcoin ETFs will commence when the markets open on January 11. The pre-market trading data appears bullish for this new regulated investment product for U.S. investors.
Interestingly, the Bitcoin price did not react significantly to the official approval of the first-ever spot Bitcoin ETF, maintaining a trading level around $46,000 before and after the approval. Some crypto enthusiasts pointed out that the BTC price reacted more significantly to fake ETF approval news on January 9, surging as high as $48,000. However, market analysts anticipate more bullish activity in the price with the commencement of official trading, as they expect billions of dollars to flow into these ETFs.
As of the current time, Bitcoin price is trading above $46,500, with just a few hours remaining before the start of official trading.
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