- Bitcoin ETFs in the US purchased more than $420 million worth of BTC tokens
- A total of 6,608 BTC were scooped by all 11 spot BTC ETFs combined
- BlackRock ETF, IBIT, traded more than $1 billion in volume on Tuesday
Spot BTC ETFs Pick Up BTC Worth $420 Million on Tuesday
Spot Bitcoin exchange-traded funds in the US collectively purchased more than $420 million worth of the crypto asset on Tuesday. All 11 BTC investment vehicles approved by the Securities and Exchange Commission scooped up a total of 6,608 BTC coins, expressing optimism over the prospects of the crypto industry.
More precisely, the new asset class is getting more and more integrated into the daily life of institutional investors and retail traders alike. Through the ETFs, Individuals and businesses can get a hold of the original cryptocurrency. How does that work? The ETFs hold genuine Bitcoin, allowing everyone to participate by buying a piece of it, thus adding to Bitcoin’s market cap in the process.
BTC ETFs Rewire the Way Markets Work and Invest
For this to happen, however, markets had to wait more than 11 years from the first BTC ETF application to the SEC’s approval in early January this year. Moreover, the 11 approved BTC ETFs compete for user deposits and are offering relatively low commissions and fees, helping to further lower the entry barrier for anyone who wants to join.
More Than $1 Billion in Traded Volume by BlackRock’s IBIT
Back to Tuesday’s trading performance, the ETF packaged by BlackRock, the world’s largest asset manager overseeing $10 trillion across investments, was the biggest winner of the day. The ETF, called IBIT, realized more than $1 billion in trading volume.
What does this mean? It means that traders collectively exchanged so many tokens, the worth of all trading activity amounted to more than $1 billion in traded volume. This is welcome news to market participants who are looking for a pick-up in dealmaking in the fast-growing asset class of digital assets.
Markets Stay Optimistic Over Long Term Prospects
Moreover, it indicated that both institutions and retail investors are keen to jump in and trade. The ETFs make it possible for big money managers and professional capital allocators to snap up some Bitcoin and store it safely right alongside traditional assets, such as stocks, bonds, currencies, and commodities.
What’s Happening with the Price of Bitcoin?
Against this backdrop, the price of Bitcoin continued to rise on Tuesday and early Wednesday. The orange coin was trading at levels above $65,000 a piece on Wednesday, after a 4% rise on Tuesday. The upside momentum was fueled by Donald Trump’s survival after an assassination attempt on his life. Trump’s agenda to support crypto-friendly regulations has been narrating the leading token’s price trajectory since the weekend.
And not only.
The broader crypto asset space has enjoyed tail winds as well. The entire worth of the overall crypto market space has ballooned to $2.4 trillion, up about 4% in the past 24 hours. With this in mind, the future growth prospects of the crypto space are looking bright with market participants remaining optimistic in both the short term and the long term.
