NEW YORK - The financial industry is witnessing a significant milestone with the launch of Bitcoin spot Exchange-Traded Funds (ETFs), marking a notable shift in the regulatory landscape. The Securities and Exchange Commission's (SEC) recent approval has led to a flurry of activity in the market, with major financial institutions such as Invesco, Fidelity, and BlackRock (NYSE:BLK) quickly entering the competitive fray.
BlackRock's Bitcoin spot ETF, known as IBIT, saw a remarkable trading volume at its debut, with $7.5 million shares traded. The industry's enthusiasm was further evidenced by the substantial inflow of capital from pension funds and insurance companies, which contributed to a striking $500 million on the first day of trading.
Bitcoin itself reacted to the news, with its price momentarily spiking to $49,000, before settling at a slightly lower figure of $46,000. This movement reflects the market's anticipation of supply pressures following the ETFs' launch.
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