The U.S. Securities and Exchange Commission (SEC) has approved 11 spot Bitcoin ETFs, leading to a significant pre-session surge for BlackRock’s iShares Bitcoin Trust ETF (IBIT) on Nasdaq. Trading began at $26.99, a jump of over 20%. Experts predict this high demand for IBIT and other spot Bitcoin ETFs on their first trading day will positively impact the prices of Bitcoin and other altcoins.
BlackRock’s IBIT saw approximately a 25% increase to $27.31 before the session opened. The ETF’s net asset value (NAV) was $26.12 at the approval date. Following its Nasdaq listing, IBIT will be available on the iShares website and the Aladdin investment platform, reaching over 175,000 users.
Bloomberg anticipates that spot Bitcoin ETFs could attract $4 billion on the first day, with BlackRock potentially capturing $2 billion of these inflows. BlackRock has recently reduced its fund management fee to 0.25% and waived a portion of this fee for the first 12 months, applying a reduced fee of 0.12% for the first $5 billion managed.
BlackRock’s IBIT is expected to remove certain barriers and operational burdens for investors ranging from asset management firms to financial advisors, facilitating direct investments into Bitcoin. Dominik Rohe of BlackRock highlighted that IBIT offers investors a cost-effective and convenient way to access Bitcoin.
On the day the U.S.’s first spot Bitcoin ETFs begin trading, Bitcoin’s activity is high, with a 2.80% increase over the past 24 hours, trading at $46,849. Experts suggest that the launch of spot Bitcoin ETFs could lead to significant upward movements for Bitcoin and a ripple effect on altcoins. Bitcoin’s market cap stands at $918 billion, needing an approximate $61 billion increase to break the $50,000 threshold.