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BlackRock's Bitcoin ETF IBIT Records First Millions in Volume, But There May Be a Catch

Published 01/17/2024, 07:28 AM
Updated 01/17/2024, 07:31 AM
© Reuters.  BlackRock's Bitcoin ETF IBIT Records First Millions in Volume, But There May Be a Catch
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U.Today - BlackRock (NYSE:BLK)'s iShares Bitcoin Trust (IBIT) has recorded an impressive $2 million worth of shares traded during the premarket hours, according to Eric Balchunas, Senior ETF Analyst at Bloomberg. The most remarkable aspect is not only the substantial volume but the timing — 6:00 a.m. on the premarket, setting a promising tone for what could be a monumental day.

The SEC declared the registration statement for BlackRock's spot Bitcoin ETF effective yesterday, along with the approval of 10 other applications. IBIT, designed to track the BTC price, is poised to commence trading on the Nasdaq today, adding a new dimension to the crypto investment landscape.

While the impressive early volume indicates a strong start, analysts remain cautious, speculating that this trading activity may be part of a carefully orchestrated plan by BlackRock, slowly loading the BYOA funds it had lined up.

As the premarket activity unfolds, the iShares Bitcoin Trust (IBIT) is already making waves, trading at an impressive 23.21% surge, reaching $27.02 on the Nasdaq, according to data from Yahoo Finance. This early momentum suggests a bullish start for the ETF on its debut day.

BlackRock's Bitcoin ETF buzz

According to industry sources, there is a possibility of BlackRock having already secured a staggering $2 billion in capital from Bitcoin holders eager to dive into the spot Bitcoin ETF in its first week post-launch. If this hearsay proves accurate, the influx of $2 billion would shatter all existing records for first-day and first-week inflows for ETFs.

The anticipation surrounding IBIT's debut is palpable, with market participants eagerly awaiting the opening of the U.S. stock markets in just over two hours.

This article was originally published on U.Today

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