Bitcoin‘s price soared to $47,248 on January 8, continuing its strong trend as anticipation builds with only hours remaining. Despite weak interest in altcoins, Ethereum gained nearly 5%. All eyes are on Bitcoin during what may be the most significant days of 2024 for the cryptocurrency market, with major investors already lining up.
Leaks suggest BlackRock has gathered about $2 billion in demand for ETFs in the early days. The U.S. confirming the legitimacy of cryptocurrencies and providing a reliable investment channel is crucial for institutional investors to enter the market, which is contingent on the approval of a Spot Bitcoin ETF. This would enable retirement funds, investment companies, accredited investors, and individual traders to easily purchase BTC.
ETFs are one of the simplest ways to invest in an asset securely. You can hold assets like gold in ETF form in your account and expose a small percentage of your savings to riskier assets through ETFs.
For example, there are ETFs that allow investments in small and medium-sized companies with growth potential, emerging countries, or the largest U.S. corporations. Even a fraction of a percent of trillion-dollar investor capital exposed to BTC ETFs could have a multiplier effect on the markets.
Potential spot bitcoin ETF issuers revealed initial funding details early Monday, with VanEck seeding a potential ETF with $72.5 million, Bitwise starting at $500,000, and Pantera Capital committing to invest $200 million if Bitwise is approved. BlackRock seeded its potential ETF with $10 million, targeting an early demand of around $2 billion. With ETFs expected to begin trading by Thursday or Friday, a significant increase in volatility is anticipated.