BTC price is experiencing high volatility, coinciding with the commencement of operations for the first spot Bitcoin ETFs in the United States. The SEC granted approval to these funds, marking a historic moment in the integration of Bitcoin-linked financial products into the conventional financial system.
Following a price increase of 7.6%, reaching $48,517 at 9:45 a.m., it momentarily reflected market expectations and interest in ETF adoption. During the initial trading, both BlackRock’s IBIT and Grayscale’s GBTC emerged as popular tickers, with BlackRock leading in volume according to real-time data, reaching $1.5 billion in transactions by 10:16 a.m. ET.
However, at this moment, the leading cryptocurrency is undergoing a significant price correction. With a drop in its value, falling nearly $3,000, it is now close to $46,100. The trading volume remains around $62 billion.
Bloomberg Intelligence analysts, Eric Balchunas and James Seyffart, shared their observations on the initial impact of the ETFs. Balchunas highlighted significant volume in the first 20 minutes of trading, indicating substantial interest, while Seyffart noted that the ETFs reached $1.2 billion in volume in the first 30 minutes. However, Seyffart expressed caution, emphasizing the need to assess how much of this volume represents real fund flows.
Despite the Flows, Bitcoin is on the Decline Amid Ambiguous Forecasts
Market attention is now focused on trading volume and fund flow expectations. Valkyrie, for example, estimates that its ETF could attract between $200 million and $400 million in the early days, contributing to a total of $4 billion to $5 billion in flows for all participants in the first weeks. VanEck projects flows of $1 billion in the early days and $2.4 billion in the first quarter.
Estimates from other market players are equally optimistic. Galaxy anticipates flows of $14 billion in the first year, while Bitwise predicts that the ETF market could reach approximately $72 billion in the next five years.
At this moment, it is crucial for the entire crypto community to closely monitor events and take necessary precautions to deal with the high volatility that BTC is experiencing.