Bitcoin ETF spot trading first day of Bitcoin fluctuations

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Shortly after the SEC approved the spot application of 11 Bitcoin ETFs from financial giants, this ETF was quickly listed for trading on the stock exchange.

Bitcoin ETF spot official trading

On the morning of January 11 (Vietnam), the U.S. Securities and Exchange Commission (SEC) officially approved 11 Bitcoin ETF spot funds.

The market is all green after the SEC announced approval of a series of Bitcoin ETF spot funds

As of 9:30 pm that day, Bitcoin ETF spot funds from major companies such as Ark Invest, BlackRock, Bitwise, VanEck, WisdomTree, Invesco & Galaxy, Fidelity, and Valkyrie were quickly listed for trading on the stock exchange.

In just 5 minutes after its listing, the Bitcoin ETF spot trading volume reached US$1 billion. This demonstrates the appeal of the ETF asset class to investors.

Valkyrie co-founder and chief investment officer (CIO) Steven McClurg expects $200 million to $400 million to flow into its Bitcoin ETF. Additionally, in the first two weeks, he expects approximately $4 billion to $5 billion to flow into Valkyrie’s Bitcoin ETF.

VanEck estimates that inflows into Bitcoin ETF spot will reach $1 billion in the first few days and could reach $2.4 billion within a quarter. Galaxy, meanwhile, predicts that inflows could reach $14 billion in the first year. Bitwise also released an estimate that the market size for Bitcoin ETF spot funds will reach approximately $72 billion over the next five years.

As can be seen, these are quite positive predictions for the Bitcoin ETF Spot Fund and the crypto industry as a whole.

Bitcoin price “roller coaster”

After the Bitcoin ETF spot was traded on the exchange, the price of Bitcoin also responded quickly, rising 4% in 24 hours, surpassing the $49,000 mark. However, the price soon made a “U-turn” and dropped to $45,600. As of this writing, BTC is trading at around $46,100. However, Bitcoin’s price action likely means investors have started taking profits.

1-hour candlestick chart of BTC price movements.

When delving deeper into BTC price dynamics, the timing of BTC’s rise above $49,000 is very consistent with the changing dynamics of the global financial landscape, where digital currencies are playing a more prominent role. At the same time, the total trading volume of ETF spot also hit a staggering figure – reaching US$2.3 billion within 20 minutes of opening.

The difference between Bitcoin and Bitcoin ETF spot

standard	Bitcoin	Bitcoin ETF Spot
Asset type	cryptocurrency	Securities backed by Bitcoin
Trading places	cryptocurrency exchange	stock trading
my own	Investors have ownership of the Bitcoins (which can be sent to others or transferred to a personal wallet)	Investors do not have ownership of the ETF and can only sell and withdraw money. They cannot transfer or store the Bitcoins in the ETF.
Risk prevention	If you keep your Bitcoins for yourself, you must let your family know what to do if you encounter problems	If you buy an ETF or keep it on an exchange, your family can still contact the exchange if you have any questions
cost	The fees on the exchange are transaction fees, which are the fees for buying and selling. The higher the fee, the higher it will be.	The fee for ETF is a management fee, which means that if you neither buy nor sell, you still have to pay an annual fee, so it will be relatively low.