After the recent green light for spot BTC ETFs by the SEC, BlackRock’s BTC ETF is showing promising volume that may soon eclipse that of Grayscale’s GBTC.
Bitcoin’s Price Recovery
Following a period of volatility, Bitcoin has successfully reclaimed the $43,000 level, experiencing a growth of over 2% in just 24 hours on January 29. This surge in value coincides with a notable 20% increase in trading volume, signaling a potential turnaround from the 10% dip Bitcoin faced on January 22.
ETF Volume Wars
Grayscale’s GBTC initially led the race in trading volume among ETFs, with significant outflows recorded. However, BlackRock’s iShares Bitcoin Trust (IBIT) is now in the spotlight, having traded $2 million more than GBTC shortly after the market opened. BlackRock is not just a contender in the ETF space but also a substantial Bitcoin holder, with over 52,000 BTC to its name.
The Shifting Landscape
While Grayscale momentarily reclaimed its lead in trade volume, experts like Bloomberg’s James Seyffart suggest that BlackRock’s ETF might soon outperform GBTC. This would mark a historic moment as the first spot BTC ETF to do so since the SEC’s approval of these financial products on January 10.
Federal Reserve’s Stance
Bitcoin’s future movements could also be influenced by the upcoming Federal Open Market Committee meeting. With the CME FedWatch tool indicating a high likelihood of the Federal Reserve maintaining its current interest rate, the crypto markets watch closely for any potential impact on investor sentiment and market dynamics.
For more detailed analysis and updates on the evolving crypto ETF landscape, stay tuned to AI Crypto Pulse.
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