Bitcoin ETF Approved
Bitcoin, the world’s first and most popular cryptocurrency, recently received approval for several Bitcoin exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC). This long-awaited approval has led to significant changes in how both institutions and regular people can interact with largest cryptocurrency. On January 11, 2024, the SEC approved 11 Bitcoin ETFs for trading. Within minutes of the Bitcoin ETFs going live, Bitcoin’s price rose over 8%, reaching a new 22-month high.
The trading volume for spot Bitcoin ETFs was remarkable, with the first 30 minutes of trading recording a $1.2 billion volume. Early reporting suggests that it has easily broken the previous ETF first day trading flow/volume of all time, which was $2.1 billion. The leading ETF, the Grayscale Bitcoin Trust (GBTC), recorded an impressive trading volume of $446 million in the initial minutes. The approval of the Bitcoin ETF has made Bitcoin much more accessible to large institutions, such as hedge funds and financial institutions. These institutions can now invest in Bitcoin through a regulated and transparent platform, reducing the risk and complexity associated with direct investment in the cryptocurrency.
This increased accessibility has the potential to drive further growth in the Bitcoin market as more institutional investors enter the space. For individuals, the Bitcoin ETF has made it easier to invest in Bitcoin through traditional investment platforms. Investors can now access Bitcoin through their brokerage accounts, IRAs, and even company 401(k)s. This ease of access has the potential to attract a new wave of individual investors who may have been hesitant to invest in Bitcoin through more complex and less regulated channels.