historic arrival Bitcoin Exchange Traded Fund (ETF) Entering Wall Street has been a hot topic in the cryptocurrency world since BlackRock, a giant in traditional finance. contaminated I applied for an investment product last June.
After finally getting approval and starting trading last week, BlackRock is doing well. iShares Bitcoin Trust (IBIT) sitting now We manage over $1 billion in assets. It is the first spot cryptocurrency ETF to surpass that threshold.
“We are pleased that IBIT has achieved this milestone in its first week, reflecting strong investor demand,” said Robert Mitchnick, head of digital assets at BlackRock. “This is just the beginning.”
However, the price of the largest cryptocurrency by market capitalization is not looking very good. Bitcoin (BTC) It’s down 3% in 24 hours and trading at $41,336, CoinGecko. show.
This time last week, when the 10-BTC ETF began trading, the price of the digital coin was got closer $49,000.
It is now down more than 11%.
why? This may have something to do with investors cashing in on the profits they made from the initial ETF hype. As anticipation grew in the days, weeks, and even months leading up to the SEC’s final approval, more money flowed into Bitcoin. For this reason, some analysts have suggested that ETF approval is already a done deal. The price has been set. This means that traders and investors are unlikely to continue buying once approval becomes official.
Analysts at blockchain data firm CryptoQuant said in a late December report that they expected traders to line up as follows: “Sell the news” Following the approval of the Bitcoin ETF, this opinion was echoed by analysts at K33 Research.ater changed its stance. The ETF is about to hit the market.
It now appears that the initial hunch may have been correct.
Meanwhile, the rest of the cryptocurrency market is not doing as well, as altcoins typically follow market leaders. Ethereum (ETH)The second-largest digital coin, is down nearly 3% and trading at $2,470.
Other big losers today include: Solana (SUN), has lost more than 6% of its value in the last 24 hours and is currently priced at $94.46. However, it is worth noting that SOL has been on a downward trend since October, surging more than 300% from a price of just over $23 per token.
Solana’s resurgence is a reminder to current cryptocurrency traders, especially long-term investors, that this isn’t all bad news.
Cryptocurrencies are generally going strong. From December, interest from institutional investors is increasing. Now that the Bitcoin ETF is finally becoming a reality in the U.S., the cryptocurrency market is trillions of dollars promised.
