of Aeon
Spot Bitcoin exchange-traded funds began trading on U.S. exchanges for the first time on Thursday as investors piled into the best-known cryptocurrency Bitcoin (BTC-USD) and other major tokens.
The largest and oldest token (BTC-USD) increased by 2.5% to $46.7k at 10:52 a.m. ET after reaching as high as $49,000 earlier in the session – its highest level since December 2021. As a result, most new Bitcoin ETFs posted losses after briefly rising out of the gate.
ETFs that saw declines in early trading include: iShares Bitcoin Trust (NASDAQ:IBIT) -1.7%Valkyrie Bitcoin Fund (NASDAQ:BRRR) -2.1%ARK 21Shares Bitcoin ETF (Bats: Arkb) -3.4%Invesco Galaxy Bitcoin ETF (Bats: BTCO) -0.2%VanEck Bitcoin Trust (Bats: HODL) -1.6%Fidelity Wise Origin Bitcoin Fund (Bats: FBTC) -1.7%and Franklin Bitcoin ETF (Bats: EZBC) -3.1%.
For the winners: Bitwise Bitcoin ETF (NYSEARCA: BITB) rose by 5.8%Grayscale Bitcoin Trust (OTC:GBTC) increased by 1.7% and WisdomTree Bitcoin Fund (Bats: BTCW) fought his way through 0.1% increase.
The fluctuations come after the long-awaited approval of 11 spot Bitcoin exchange-traded funds by the US Securities and Exchange Commission marked a new milestone for the entire crypto space. Investors will be keeping an eye on the volume of inflows into the new funds, which are widely expected to drive BTC demand higher.
“In the short term, the approval will attract new investors and drive wider adoption, leading to greater inflows of funds from institutions and significant investment flows from mainstream investors,” said Euegene Abungana, analyst at dappGambl.
“In turn, we believe this will help increase confidence in BTC, attract more smaller investors and drive the price to new highs overall in the long term,” he added.
How well spot Bitcoin ETFs track the underlying asset (i.e. Bitcoin) and Bitcoin futures is another topic that market participants will be paying attention to.
Bitcoin Futures ETFs: ProShares Bitcoin Strategy ETF (BITO) +1.3%VanEck Bitcoin Strategy ETF (XBTF) +0.8% and Hashdex Bitcoin Futures ETF (DEFI) +2.8%.
More information about ARK 21Shares Bitcoin ETF Beneficial Interest, Bitwise Bitcoin ETF, etc.
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