BlackRock's iShares Bitcoin Trust (IBIT) has recently commenced premarket trading and is witnessing a notable surge, currently up 22.25% and trading at $26.81. This iShares Trust is listed on the Nasdaq exchange. Concurrently, Grayscale's Bitcoin Trust (GBTC) ETF, another major player in the spot BTC ETF market, has also begun pre-market trading. GBTC, listed on the New York Stock Exchange (NYSE), has seen its shares rise by 2% in pre-market trading hours.
The United States Securities and Exchange Commission (SEC) has granted a landmark approval for the first regulated spot Bitcoin (BTC) exchange-traded fund (ETF) in the country. This decision comes just a day after false announcements from the SEC’s Twitter account led to significant market disruption. SEC Commissioner Mark Uyeda, who voted in favor of the Bitcoin ETF application, expressed his "strong concerns" about certain aspects of the approval order, critiquing its rationale and potential long-term implications.
Uyeda criticized the SEC for not treating Bitcoin like other commodities, highlighting that Bitcoin ETFs have been subjected to a unique and novel "significant size" test by the committee. This historic approval is significant as it allows for the first regulated exchange-traded product in the U.S. that offers investors direct exposure to Bitcoin’s price movements without the need to directly purchase or self-custody Bitcoin.
The anticipation for the SEC's decision on spot Bitcoin ETFs is high, with predictions suggesting that the approval could be issued between 4:00 PM ET and 6:00 PM ET. Bloomberg ETF analyst Eric Balchunas suggests that the first spot Bitcoin ETFs could start trading as early as January 11. This comes despite concerns that the SEC might delay approval due to a recent scandal involving false ETF approval news posted on their social media accounts, which were hacked.
Amidst these developments, Bitcoin has been experiencing significant volatility. The price of Bitcoin briefly dipped below $45,000, dropping to $44,600, a 5% decrease. At the time of reporting, BTC is trading at $45,082, reflecting a slight decrease, yet it still maintains a 6% increase over the past seven days. This recent activity occurs as Bitcoin remains 51% below its all-time high of $68,000, reached in November 2021.
