Spot Bitcoin ETFs made their U.S. public market debut on Thursday, generating more than $4 billion in trading volume and sending prices of cryptocurrencies and related stocks soaring.
Bitcoin (BTC) settled around $46,400 at the close, about 5% below its peak on Thursday, when it briefly topped $49,000 shortly after the launch of the new 11 ETFs.
The largest cryptocurrency continues to rise by 10% since the beginning of the year.
BlackRock's IBIT emerged as the winner in terms of first-day trading volume, surpassing $1 billion just before Thursday's close. The shares ended the day down around 5% at $26.63, but were unchanged in after-hours trading.
Read more: Spot Bitcoin ETFs surpass $1 billion in trading volume after first 30 minutes
Coinbase, which acts as custodian for 9 of the 11 new products launched on Thursday, saw its shares fall on debut. COIN lost almost 7%, closing at $141 and posting a negative 19% year-to-date return.
Business intelligence firm MicroStrategy and crypto mining firm Marathon Digital also fell during Thursday's session, closing 5% and 13% lower, respectively.
Ether (ETH) emerged as an early winner in the Bitcoin ETF saga, rising as much as 8% on Thursday, with its weekly gains coming in 13% higher. According to analysts, this is a sign that traders may be betting that the US Securities and Exchange Commission will soon greenlight Ether ETFs, but comments from the commission and historical precedent do not bode well.
Read more: Spot Bitcoin ETF trading volume exceeds $2.6 billion
Ether futures ETFs launched in October 2023, two years after Bitcoin futures products were approved by the SEC. The securities regulator has already received submissions on spot Ether ETFs and could issue responses as early as May, but commissioners are likely to extend the review period.
SEC Chairman Gary Gensler's statement on Wednesday makes it clear that while he voted for the approval, he does not in any way support cryptocurrencies as a whole.
“Although we are performance neutral, I would like to note that the underlying assets in the metal ETPs are for consumer and industrial purposes, while Bitcoin, in contrast, is primarily a speculative, volatile asset that is also used for illicit activities such as ransomware, money laundering “Tax evasion and terrorist financing,” Gensler wrote.
Don't miss the next big story – sign up for our free daily newsletter.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.