(Source: bombolo.in)
Recently, something important happened in the world of cryptocurrency. In the United States, there are now special funds called Bitcoin exchange-traded funds (ETFs) that people can buy and sell on the stock market. These funds saw a big increase in trading activity, with a total of $4.6 billion worth of shares bought and sold. This happened right after the U.S. government gave its approval for these funds to exist and be traded. The approval of Bitcoin funds is a big deal for the cryptocurrency industry.
The approval has been given for eleven different Bitcoin exchange-traded funds (ETFs). These are special funds that let people easily buy and sell Bitcoin through the stock market. Some well-known ones include BlackRock’s iShares Bitcoin Trust, Grayscale Bitcoin Trust, and ARK 21Shares Bitcoin ETF. Now that these ETFs are available for trading since January 11, there's strong competition among companies wanting a piece of the market. It's like a race among them to attract investors and become popular in the world of Bitcoin investments.
BitMEX Research data shows that there has been a total positive influx of $400 million for seven different Bitcoin exchange-traded funds (ETFs). For example, FBTC had a net influx of $227 million, IBIT saw a net increase of $112 million, EZBC had a net gain of $50.1 million, and HODL experienced a net inflow of $10.6 million. Interestingly, companies like Grayscale, BlackRock, and Fidelity are dominating the market based on the amount of trading happening, according to data from the London Stock Exchange Group. It means these companies are handling a large share of Bitcoin ETF transactions.
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Initial Trading Phase:
Even though a lot of people traded these new ETFs a lot in the beginning, experts are warning us not to think of it as something that will only last a short time. Todd Rosenbluth, a strategist at VettaFi, said, "A lot of trading is happening with these new ETFs, but we need to look at it as a marathon, not just a sprint." This means we shouldn't make quick judgments based on just one day of trading.
The recent increase in trading, reaching $4.6 billion, for Bitcoin ETFs listed in the United States is a very important event for the cryptocurrency world. he fact that these funds got approval and are now being traded is like a test to see if more people will start considering digital assets, like Bitcoin, as a normal and popular way to invest.
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