Historical access to Bitcoin exchange-traded funds (ETFs) Wall Street has become the talk of the cryptocurrency world since traditional finance giant BlackRock. foot He applied for the investment product last June.
After finally getting approval last week and starting trading, BlackRock is doing well: its iShares Bitcoin Trust (IBIT) is… He sits now Over $1 billion in assets under management. It is the first cryptocurrency ETF to cross this threshold.
“We are pleased to see IBIT reach this milestone in its first week, reflecting strong demand from investors,” said Robert Mitchnik, Head of Digital Assets at BlackRock. “This is just the beginning.”
But the price of the largest cryptocurrency by market cap is not looking good. Bitcoin (BTC) Down 3% in 24 hours and trading for $41,336, CoinGecko Offers.
At this time last week, when 10 BTC ETFs started trading, the cryptocurrency’s price was plummeting. Come closer $49,000.
It is now down more than 11%.
Why? It could have something to do with investors cashing in on their gains from the initial hype of ETFs. As excitement built in the days, weeks, and even months leading up to final SEC approval, more money flowed into Bitcoin. For this reason, some analysts have indicated that ETF approval has already occurred It has been “priced” This means that traders and investors are unlikely to continue buying after the approval becomes official.
Analysts at blockchain data firm CryptoQuant said in a late December report that they expect traders to line up “sell news” After Bitcoin ETFs are approved. Analysts at K33 Research echoed this view, although the company lHe then reversed his position Shortly before ETFs hit the market.
It now appears that the initial intuition may have been correct.
Meanwhile, the rest of the cryptocurrency market is not doing well either, with altcoins usually following the market leader. Ethereum (ETH)the second-largest cryptocurrency, fell nearly 3%, trading at $2,470.
Among the other big losers today Solana (Sol), which has lost more than 6% of its value in the past 24 hours, and is now priced at $94.46. However, it is worth noting that SOL has been on a tear since October, rising over 300% from just over $23 per token.
Solana’s re-emergence is a reminder that it’s not all bad news for crypto traders right now, especially for long-term investors.
Cryptocurrencies have been largely on an uptrend Since DecemberWith increasing interest from institutional investors. With Bitcoin ETFs finally becoming a reality in the US, the cryptocurrency market is waiting for them to emerge. Trillions promised.