In a groundbreaking move, the U.S. Securities and Exchange Commission (SEC) has given the green light for listing and trading spot Bitcoin exchange-traded funds (ETFs). This significant development enabled the largest asset manager, BlackRock, to launch the iShares Bitcoin Trust ETF (IBIT) with remarkable success. The ETF surged a staggering 25% in premarket hours on the Nasdaq, signaling a strong start for spot Bitcoin ETFs.
BlackRock’s iShares Bitcoin Trust ETF rises 25%
BlackRock’s iShares Bitcoin Trust (IBIT) ETF is off to an impressive start, trading at $27.50 on January 11, reflecting a notable 25% increase in pre-market hours. Notably, its net asset value (NAV) was $26.12 at the time of approval. Industry experts expect significant inflow into spot Bitcoin ETFs; Bloomberg predicts a potential $4 billion inflow on day one, and BlackRock is expected to pull in about $2 billion directly.
The BlackRock spot Bitcoin ETF is now live on the iShares website Nasdaq and available to 175,000 Aladdin investors on its platform upon listing. To encourage participation, BlackRock announced a fee reduction to 0.25% and a partial fee waiver for the first 12 months; this resulted in a 0.12% charge on the NAV of the initial $5 billion of assets. Dominik Rohe, head of BlackRock’s iShares ETF and Index Investment unit for the Americas, emphasized that through IBIT, investors gain affordable and easy access to Bitcoin. This strategic move by BlackRock is expected to remove barriers and operational complexities, making direct Bitcoin investments easier for a wider range of investors, from asset managers to financial advisors.
Comment from ARK Invest President
ARK Invest President Tom Staudt expressed unwavering optimism about the pricing of the Bitcoin ETF proposed by ARK Invest and its partner 21Shares. Staudt remains confident in the product’s pricing even after the initial fee waiver period. The Spot Bitcoin ETF aims to address key investor concerns by eliminating key “pain points.” ARK Invest is preparing to launch a competitive 21 basis point Bitcoin ETF in collaboration with 21Shares. In particular, the ETF’s offer of fee waivers for the first six months or until it reaches $5 billion in assets will present an attractive proposition to potential investors.
Staudt emphasized that the pricing strategy aims to reduce overall costs, including those associated with trading and spreads, and make direct crypto investment more economically viable. The move is expected to eliminate friction points related to oversight, accessibility and regulatory uncertainties. Tom Staudt’s views underscore the potential of Spot Bitcoin ETFs to reshape the investment landscape by providing accessible access to a maturing asset. The long-term impact on investor behavior and market dynamics will become clearer in the coming months as the cryptocurrency market embraces these new developments.
To be informed about the latest developments, follow us Twitter’in, Facebookin and InstagramFollow on . Telegram And YouTube Join our channel.