The Rise of Bitcoin ETFs: BlackRock iShares and Grayscale’s Bitcoin Trust Begin Trading in the US

Pre-market trading refers to the practice of buying and selling assets prior to the opening of regular market hours, or simply put, trading before the start of regular market hours.

The first-ever Bitcoin Exchange-Traded Fund (ETF) in the US has started trading in pre-market hours and is experiencing significant gains in its value.

In a groundbreaking moment for the cryptocurrency industry, the United States has witnessed the debut of its first-ever spot Bitcoin exchange-traded fund (ETF). BlackRock’s iShares Bitcoin Trust, symbolized as IBIT, began trading in the pre-market just a day after receiving approval from the U.S. Securities and Exchange Commission (SEC). This marks a significant milestone for the mainstream adoption of Bitcoin in the United States.

The Pre-Market Eruption

The iShares Bitcoin Trust, listed on the Nasdaq exchange, has become the center of attention as it soared by 22.25%, currently trading at an impressive $26.81. This early surge in value has grabbed the attention of market observers, with trade volume hitting $2 million worth of shares during pre-market trading.

Bloomberg senior ETF analyst, Eric Balchunas, noted the significance of this volume, comparing it to a successful full day of trading for an average ETF. However, he also cautioned that this remarkable activity may be primarily driven by BlackRock, the global investment management corporation behind iShares. Nonetheless, this strong start in pre-market trading signals a bright future for Bitcoin ETFs in the United States.

Grayscale’s Bitcoin Trust Joins the Race

BlackRock isn’t the only major player seeking to capitalize on Bitcoin’s growing prominence. Grayscale’s Bitcoin Trust (GBTC) ETF also entered the pre-market trading arena, experiencing a modest 2% increase in value. This ETF is listed on the New York Stock Exchange, making it a formidable competitor for BlackRock’s iShares Bitcoin Trust.

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Understanding Pre-Market Trading

Before diving deeper into the implications of these events, let’s take a moment to explore what pre-market trading entails. Essentially, it refers to the process of buying and selling assets before the official market trading hours commence. Typically, pre-market trading takes place between 8:00 am and 9:30 am Eastern Time, allowing traders to gauge market trends and anticipate post-opening behavior.

FAQ: What are the advantages and disadvantages of pre-market trading?

Q: Is pre-market trading suitable for all investors?

A: Pre-market trading is best suited for experienced investors who can evaluate risks effectively. Novice investors may find it challenging to navigate this volatile environment.

Q: How does pre-market trading affect regular trading hours?

A: The activity during pre-market trading can influence how the market performs once regular trading hours begin. It provides valuable insights into the sentiment and direction of the markets.

Q: Are there any risks associated with pre-market trading?

A: Pre-market trading can be highly volatile, leading to rapid price changes. Additionally, there may be limited liquidity during this time, which can impact the execution of trades.

The SEC’s Landmark Approval

The SEC’s approval of 19b-4 applications from various investment firms is a watershed moment for the cryptocurrency industry. ARK 21 Shares, Invesco Galaxy, VanEck, WisdomTree, Fidelity, Valkyrie, BlackRock, Grayscale, Bitwise, Hashdex, and Franklin Templeton are among the companies whose spot Bitcoin ETFs have been granted permission to list and trade on various public exchanges.

This move signifies the growing acceptance and recognition of Bitcoin as a legitimate investment asset. As of January 11, the official trading for all 11 approved Bitcoin ETFs will commence. The current pre-market trading data suggests bullish sentiment among U.S. investors, indicating the potential for significant inflows into these ETFs.

Bitcoin’s Response and Future Outlook

Interestingly, the Bitcoin price didn’t experience a substantial reaction to the official approval of the first-ever spot Bitcoin ETF. It remained around the $46,000 mark both before and after the announcement. Critics pointed out that the price reacted more significantly to the fake ETF approval news on January 9, surging as high as $48,000. However, market analysts anticipate that the start of official trading will drive increased bullish action as billions of dollars are expected to flow into these ETFs.

As of now, Bitcoin is trading above $46,500, with only a few hours remaining until regular trading hours begin. The future of Bitcoin ETFs in the United States certainly looks promising, indicating a new era of opportunities and growth for cryptocurrency investors.

References

1. BTC Price: $43K as Smart Money Bets Big on Bitcoin Ahead of Potential ETF Approval
2. US SEC Cites Terraform Case, Coinbase & Binance Rulings
3. Wild Trading Session Sees Tellor’s TRB Token Slide 720% in 180 Hours
4. Gary Gensler Voted to Approve Bitcoin ETFs Despite Public Criticism
5. 10 Best Long Reads About Crypto in 2023

📢 Have you heard? The first-ever spot Bitcoin ETFs have arrived in the United States! 🚀 BlackRock’s iShares Bitcoin Trust and Grayscale’s Bitcoin Trust have already started trading in the pre-market, generating significant buzz in the financial world. 🌐 Find out more about these groundbreaking ETFs and what they mean for the future of cryptocurrency investment. Don’t miss this exciting update! Share this article with your friends and colleagues and join the conversation. 🤝💬

BlackRock’s iShares Bitcoin Trust in pre-market trading. Source: Yahoo

Grayscale GBTC pre-market trading. Source: Yahoo

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