The historic arrival of Bitcoin Exchange Traded Funds (ETFs) on Wall Street has been the talk of the crypto world since traditional financial giant BlackRock filed submitted its application for the investment product last June.
After finally receiving approval and starting trading last week, BlackRock is doing well: its iShares Bitcoin Trust (IBIT). sit now to over $1 billion in assets under management. It is the first spot crypto ETF to cross this threshold.
“We are pleased to see IBIT reach this milestone in its first week, reflecting strong investor demand,” said Robert Mitchnick, head of digital assets at BlackRock. “That's just the beginning.”
But the price of the largest cryptocurrency by market capitalization isn't looking so good. Bitcoin (BTC) is down 3% in 24 hours and is trading at $41,336, CoinGecko shows.
This time last week, as 10 spot BTC ETFs began trading, the price of the digital coin increased approached $49,000.
It has now fallen by more than 11%.
Why? It could have something to do with investors cashing out their gains from the initial ETF hype. As excitement grew in the days, weeks, and even months leading up to the SEC's final approval, more money flowed into Bitcoin. For this reason, some analysts suspected that ETF approval was already in place been “priced in”. This means that traders and investors are unlikely to continue buying after official approval.
Analysts at blockchain data firm CryptoQuant said in a report in late December that they expect traders to start lining up “Sell news” after the approval of Bitcoin ETFs. The opinion was confirmed by analysts at K33 Research, although the company lHe then changed his position shortly before ETFs came onto the market.
It now appears that the initial guesses may have been correct.
Meanwhile, the rest of the crypto market isn't doing so well either, as altcoins typically follow the market leader. Ethereum (ETH)the second largest digital coin, is down almost 3% and is trading at $2,470.
Today's other big losers include: Solana (SUN), which has lost more than 6% of its value in the last 24 hours and is now at $94.46. However, it is worth noting that SOL has been on a tear since October, rising more than 300% from just over $23 per token.
Solana's resurgence is a reminder that it's not all bad news for crypto traders right now, especially for long-term investors.
Crypto is largely in an uptrend since December, with increased interest from institutional investors. With Bitcoin ETFs finally a reality in the United States, the crypto market is waiting Trillions promised.
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