Bitcoin Hits Near $49,000 as spot Bitcoin ETFs Start First Day of Trading!

Key Points:

• Spot Bitcoin ETFs Debut, Driving Price Surge of 8.2% to $48,969.
• BlackRock’s IBIT Leads in Trading Volume, Outpacing Competitors Post-Approval.
• Analysts Predict $4-5 Billion Inflows, Projections Spanning from $1B to $72B.

Bitcoin price surged following the debut of the first spot Bitcoin ETFs in the U.S, post the green signal from the Securities and Exchange Commission (SEC).

The world’s largest cryptocurrency witnessed a remarkable 8.2% ascent, reaching $48,969.

BlackRock’s IBIT and Grayscale’s GBTC emerged as trending tickers during the initial trading, with BlackRock demonstrating early dominance based on live volume data.

Within the first 20 minutes of trading, a significant volume was recorded, exceeding half a billion dollars for the group, excluding GBTC, and surpassing the performance of $BITO by a wide margin. Notably, $IBIT, poised to cross the $1 billion mark, led the charge alongside $FBTC. Bloomberg Intelligence analyst Eric Balchunas highlighted the substantial volume, emphasizing the likelihood of most early trading volume converting into inflows.

BlackRock’s IBIT Dominates Early Trading in Spot Bitcoin ETF Launch

Market participants are closely monitoring trading volumes, anticipating significant fund inflows. Valkyrie’s co-founder and CIO, Steven McClurg, predicts an influx of $200 million to $400 million into Valkyrie’s ETF, with an overall market expectation of $4 billion to $5 billion of inflows over the initial weeks.

Financial institutions project varying degrees of success for these groundbreaking products. VanEck estimates an initial flow of $1 billion in the first few days, escalating to $2.4 billion within a quarter. Galaxy foresees an impressive $14 billion in inflows within the inaugural year. Bitwise projects the market for spot Bitcoin ETFs to burgeon to approximately $72 billion within the next five years.

As the cryptocurrency market witnesses this unprecedented development, attention is riveted on the evolving dynamics of these ETFs and the potential they hold for reshaping the landscape of digital asset investments. The substantial projections from industry insiders underscore the significant role these spot Bitcoin ETFs may play in attracting substantial investments over the coming years.