BlackRock’s iShares Bitcoin ETF Soars on SEC Approval, $4 Billion Flood Expected

The moment we’ve all been waiting for is here! After months of market speculation, rollercoaster pump and dump sessions, and stern warnings, the Securities and Exchange Commission (SEC) has given the green light for spot Bitcoin ETFs, catapulting BlackRock’s iShares Bitcoin Trust ETF (IBIT) to an impressive market debut.

As the SEC nodded in approval, IBIT saw an astonishing 25% surge in pre-market hours on the Nasdaq, soaring from a net asset value (NAV) of $26.12 to an impressive $27.50 on the approval date.

Massive Influx of Capital

Expectations are high, with an anticipated influx of around $4 billion into spot Bitcoin ETFs on the very first day. BlackRock’s ETF is poised to attract nearly $2 billion directly, creating a ripple effect in the financial waters.

In response to the approval, BlackRock has strategically enhanced IBIT’s appeal. The management has slashed fees to 0.25% and is offering a partial fee waiver for the initial 12 months, resulting in an enticing 0.12% fee structure for the first $5 billion of the Trust’s assets.

Read More: Attention Traders: Bitcoin Spot ETF Might Cause a Major Crash; Here’s Why!

The True Power of Trading

The BlackRock spot Bitcoin ETF is now live and kicking on various platforms, including the iShares website, Nasdaq, and 175,000 Aladdin investor platforms. This strategic move is expected to simplify Bitcoin investments, eliminating operational obstacles and opening doors for various investors, from asset managers to financial advisors, to gain direct exposure to Bitcoin.

In tandem with BlackRock’s triumph, Grayscale’s Bitcoin Trust (GBTC) ETF also entered the trading arena during pre-market hours. The early trading day witnessed GBTC stock rise by 2%, with the New York Stock Exchange proudly listing it.

Industry Leaders Speak

Prominent figures in the fund issuer landscape express optimism about the SEC’s approval of Bitcoin Spot ETFs.

Dominik Rohe of BlackRock underscores IBIT as a cost-effective and convenient gateway for investors to access Bitcoin. Other industry leaders, including Matt Hougan (Bitwise), Michael Sonnenshein (Grayscale), Cynthia Lo Bessette (Fidelity), Roger Bayston (Franklin Templeton), and Leah Wald (Valkyrie), echo positive sentiments about the potential of regulated investment vehicles and the efficient exposure to Bitcoin offered by these developments.

Bitcoin Holds Steady

Contrary to expectations, the recent acceptance of the first Bitcoin ETF did not cause a seismic shift in the cryptocurrency market. Bitcoin maintained its stability at around $46,000. Intriguingly, the impact of fake news about ETF approval on January 9 had a more significant effect, briefly elevating the price to $48,000. Market experts, however, remain optimistic about potential bullish movements as official trading kicks off. The anticipation is palpable, with large amounts of capital expected to flow into these ETFs, potentially reshaping the market landscape.

Also Read: SEC Might Approve Ethereum ETF in May : Predicts Bloomberg

As of now, Bitcoin is confidently trading above $46,500, indicating cautious yet hopeful optimism among investors. The journey has just begun, and the crypto world is ready for the transformative impact of spot Bitcoin ETFs.