BlackRock’s Bitcoin ETF, called the iShares Bitcoin Trust (IBIT), saw an immediate surge of another 25% in pre-market trading on Nasdaq.
IBIT, which started trading at US$27.50, exceeded expectations with a significant increase compared to its net asset value (NAV) of US$26.12 at the approval date.
The achievement was accompanied by a reduction in the management fee to 0.25% and a partial fee waiver for the first twelve months, resulting in an effective fee of 0.12% on the first $5 billion of assets.
BlackRock Bitcoin ETF
Dominik Rohe, head of the Americas iShares ETF and index investing business at BlackRock, emphasized the importance of IBIT as a cost-effective and convenient way for investors to access Bitcoin.
Experts believe the ETF will help remove operational barriers and costs, making investing in Bitcoin easier for a wide range of investors, from asset managers to financial advisors.
In the pre-market scenario, the ETF showed a clear buying trend, with trading volume reaching 41,000 in the WeTaurusindicating strong investor interest.
Bloomberg ETF analyst Eric Balchunas noted that the $2 million trading volume for IBIT is unusually high for a new ETF, indicating a remarkable and potentially historic trading day for the product.
“Who knows what will happen today, and we don’t want to mess with our recent forecast, but we look forward to seeing if $IBIT breaks the first day flow/volume record of $2.1 billion (currently owned by another company). ETF) and if the eleven of them can get close/over $4 billion as GP.” — said Balchunas.
Who knows what will happen today, and we don’t want to mess with our recent forecast and get the nod, but we’ll be watching to see if $IBIT will break the all-time flow/volume record of $2.1 billion on day one (curr held by another blk ETF) and if the 11 of them as GP can reach close to or over $4 billion. pic.twitter.com/uVApgQdUk2
— Eric Balchunas (@EricBalchunas) January 11, 2024
Additionally, Bitcoin mining stocks such as TeraWulf, IREN and Marathon Digital Holdings also saw rallies, reflecting growing optimism in the digital currency sector.
As BlackRock gradually introduces “Build Your Own Allocation” (BYOA) funds that are prepared in advance, the increase in trading volume appears to be driven by a well-planned strategy.
Pre-market
“Pre-Market” is the period of trading on stock exchanges that takes place before the opening of the regular market. During this time, investors have the opportunity to buy and sell shares outside of normal trading hours.
Pre-market trades are executed via electronic trading systems and can provide an indication of how the market will behave at the official opening.
After the pre-market period ends, the regular trading session begins. On the NYSE and NASDAQ, the regular trading session begins at 9:30 AM and ends at 4:00 PM ET. During this period, all listed shares can be traded freely by investors and traders.
It is important to note that pre-market trading may be less liquid than during normal market hours, which can result in greater volatility and greater differences between bid and ask prices (spreads).
Additionally, not all stocks are available for pre-market trading, and some brokers may offer different pre-market times.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
