Bitcoin ETFs, backed by actual bitcoin, made their debut on US exchanges on Thursday, following over a decade of attempts. However, this development has had little impact on bitcoin’s price. After the ETFs went live, bitcoin briefly approached $49,000 but has since lost about $3,000, marking a 6% retracement.
This is slightly below the level it was at before the SEC’s social media hacker posted an unauthorized approval announcement about the ETFs on Tuesday, roughly 24 hours before the legitimate confirmation. Any significant impact on bitcoin’s price appears to have occurred much earlier. Bitcoin was trading around $25,000 before BlackRock filed for its spot ETF last June, and it rallied 20% within days.
Following the post-BlackRock surge, bitcoin managed to reclaim its price prior to the Terra implosion. However, these gains were short-lived, and bitcoin’s price fell in the subsequent weeks. By mid-October, a fake news tweet claiming that the SEC had approved BlackRock’s bid sparked a major uptrend in bitcoin’s price.
The tweet caused immediate volatility, with bitcoin’s price climbing $2,000 and then falling again within 30 minutes. However, bitcoin ended up surging nearly two-thirds in two months, from $27,700 to $44,000 in December. It hovered around this level until earlier this week.
Analysts, researchers, traders, and pundits generally agreed that the SEC would approve spot ETFs for launch in the US. On Monday, bitcoin jumped 8% to surpass $47,000 for the first time in almost two years. All things considered, the bitcoin spot ETF approval was largely anticipated by those trading on the rumor. Anyone who bought bitcoin when news of BlackRock’s filing first broke last year would now be up by more than half.
Those who bought bitcoin when the ETFs were officially approved would now be about even, and could even be slightly down. If they had chosen ether, they could be up to 8% in the green, as traders seem to be anticipating the next potential wave of crypto spot ETF approvals in the US.
BlackRock, along with other issuers such as Fidelity, VanEck, and Invesco Galaxy, have filed for a spot ether ETF since submitting their equivalent bitcoin applications. The SEC has until late May to early August to make its first decision.
In the meantime, markets are waiting to find out exactly how much bitcoin BlackRock, Fidelity, and other ETF issuers actually bought to back their respective funds after a busy first day of trading, when more than $4.6 billion in spot ETF shares were traded in the US overall. In and outflow figures will be the first indications of investor interest and could shed light on their potential influence on bitcoin prices moving forward.
Some preliminary figures have been shared on social media, but analysts caution that they may not be entirely accurate. Confirmed data is only expected to be completely accurate later in the day, or even early next week.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | None |
| Companies | VanEck, U.S. Securities and Exchange Commission, Invesco Galaxy, Fidelity, BlackRock |
| Currencies | Bitcoin, Lido Staked Ether |
| Securities | None |
