2024

Standard

Spot

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<p class="has-drop-cap">For the first time in the US, the long-awaited spot Bitcoin exchange-traded funds (ETFs) <a aria-label="received approval (opens in a new tab)" href="https://www.reuters.com/technology/bitcoin-etf-hopefuls-still-expect-sec-approval-despite-social-media-hack-2024-01-10/" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">received approval</a> from the US Securities and Exchange Commission (SEC). Bitcoin’s price saw no notable gains on the news, but <a href="https://tokenist.com/three-crypto-stocks-that-could-rise-with-bitcoins-rally/" rel="noopener noreferrer nofollow" class="deco-link">crypto-related stocks</a> like Coinbase (NASDAQ: COIN), Marathon Digital (NASDAQ: MARA), and Bitcoin Depot (NASDAQ: BTM) surged higher in premarket trading.&nbsp;</p>
<h3 id="sec-approves-11-spot-bitcoin-etf-applications">SEC Approves 11 Spot Bitcoin ETF Applications</h3>
<p>On Wednesday, the US SEC approved the first group of spot Bitcoin ETFs in a game-changing development for the broader crypto landscape.</p>
<p>Specifically, the securities regulator gave a green light for 11 applications, including those from traditional finance giants <a href="https://tokenist.com/how-blackrocks-etf-application-has-already-changed-the-crypto-market/" rel="noopener noreferrer nofollow" class="deco-link">like BlackRock</a>, VanEck, Invesco, and Fidelity. According to issuers, most funds are set to begin trading on Thursday, leading to an intense rivalry for market share.&nbsp;</p>
<p>The spot ETF approvals are <a href="https://www.reuters.com/technology/why-us-bitcoin-etf-is-game-changer-crypto-2024-01-10/" target="_blank" aria-label=" (opens in a new tab)" rel="noopener noreferrer nofollow" class="deco-link">seen as a significant advancement for cryptocurrencies</a>, enhancing their potential to enter mainstream finance. Spot ETFs allow investors to gain exposure to an asset without directly holding it, thereby mitigating certain risks and making BTC a more appealing investment for institutions. Those risks include creating crypto wallets and accounts with cryptocurrency exchanges, some of which have demonstrated vulnerability to hacks and mismanagement.&nbsp;</p>
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 <p>“It’s a huge positive for the institutionalization of bitcoin as an asset class.”</p> <cite>said Andrew Bond, managing director and senior fintech analyst at Rosenblatt Securities.</cite>
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<p>Interestingly, Bitcoin showed no noteworthy price reaction to the approval. The cryptocurrency is down 0.2% in the past 24 hours. Despite substantial gains in the past year linked to events leading to approval, there’s now speculation about whether these factors are <a href="https://tokenist.com/bitcoin-crosses-45000-to-kick-off-its-4th-halving-year/" rel="noopener noreferrer nofollow" class="deco-link">already reflected in the current price</a>.&nbsp;</p>
<p>However, the influx of new funds could significantly impact BTC’s price in the future. Earlier in the week, Standard Chartered said ETFs could draw up to $100 billion in 2024 alone. Other analysts said inflows will amount to $55 billion over five years.&nbsp;</p>
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<h3 id="crypto-stocks-surge-on-bitcoin-etf-approval-news">Crypto Stocks Surge on Bitcoin ETF Approval News</h3>
<p>Though Bitcoin has not exhibited gains on the approval reports, crypto-related stocks have.</p>
<p>Shares of Coinbase, the crypto exchange that <a href="https://tokenist.com/coinbase-is-up-319-ytd-as-btc-shines-in-2023-becomes-one-of-spxs-best-performers/" rel="noopener noreferrer nofollow" class="deco-link">witnessed colossal gains</a> in the past year, rose more than 4% in premarket trading Thursday. Marathon Digital’s stock climbed 5.03%, while shares of Canaan, a China-based blockchain server provider, surged 11.21%.</p>
<p>Bitcoin Depot, the largest BTC ATM company, soared 13.26% in the market pre-open. Crypto and stocks trading app Robinhood rose 3.79%.&nbsp;</p> <iframe src="https://tokenist.substack.com/embed" width="100%" height="320" style="border:1px solid #EEE; background:white;" frameborder="0" scrolling="no"></iframe>
<p><em><strong>With the spot Bitcoin ETF officially approved, where do you see the world’s biggest cryptocurrency trading at the end of 2024? Let us know in the comments below.&nbsp;</strong></em></p>
<p>The post <a rel="noopener noreferrer nofollow" href="https://tokenist.com/crypto-stocks-surge-in-premarket-trading-after-spot-bitcoin-etf-approved/">Crypto Stocks Surge in Premarket Trading After Spot Bitcoin ETFs Approved</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://tokenist.com">Tokenist</a>.</p>

Crypto Stocks Surge in Premarket Trading After Spot Bitcoin ETFs Approved

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