- Bitcoin soared as newly approved ETFs started trading in the U.S.
- Other crypto assets moving with the market leader posted mild gains.
- Bitcoin’s reaction comes as the recently approved ETFs saw significant interest.
Anticipation that the SEC was set to finally approve spot Bitcoin ETF products after a decade-long wait had been the primary market-driving narrative for 2023, sending prices higher with each perceived positive development. However, the crypto markets surprisingly failed to immediately react following the SEC’s landmark decision to approve these products on Wednesday, January 10.
With the lack of a price reaction on the news of approval, many looked to the opening of trading to gauge the impacts of the now-approved spot ETF products on the price of Bitcoin and the broader crypto market. Bulls were not disappointed as prices rallied almost immediately.
Bitcoin Leads Market as ETF Trading Begins
Within minutes of Bitcoin ETFs opening for trading on Thursday, January 11, the underlying asset’s price experienced a 5% gain, jumping from $46,600 to highs of $48,900. At the time of writing, however, the asset’s rally has cooled, exchanging hands below $48,000 .
BTC/USDT 4-hour candle chartSource: TradingView
As is typically the case, other crypto assets moved with the market leader, albeit recording only mild gains. Ethereum experienced a mild 1.6% increase from around $2630 to highs at $2673. Like Bitcoin, Ethereum has also dropped below daily highs, trading at $2,651 at the time of writing.
Meanwhile, other assets like Cardano (ADA) , XRP, and Dogecoin (DOGE) averaged 0.5% gains.
Bitcoin’s strong initial market reaction comes as the recently approved Bitcoin ETFs saw significant interest as the market opened.
Bitcoin ETFs Hit $1.2B Volume in 30 Minutes
One of the biggest concerns for crypto proponents ahead of the SEC’s decision to approve Bitcoin ETFs has been whether these investment funds would be able to spark significant interest immediately. As trading opened on Thursday, these fears were put to rest as the 11 approved Bitcoin ETFs saw volumes hit a combined $1.2 billion in inflows within the first 30 minutes, as reported by Senior Bloomberg ETF Analyst James Seyffart.
Analysts had tipped Bitcoin to hit all-time highs around $69k in Q1 2024 if approved Bitcoin ETFs recorded significant interest.
On the Flipside
- The current price rally could slow down or pick up depending on how much inflows and volume the recently approved ETFs record at the end of the trading day.
- Experts have cautioned against overestimating the short impacts of spot Bitcoin ETFs on Bitcoin’s price.
Why This Matters
The lack of a price reaction to the news that the SEC had approved spot Bitcoin ETFs had bolstered arguments that the development had been priced in. The price action following the start of trading, however, suggests otherwise.
