The approval of the first Bitcoin spot ETF in the United States took place on January 10, 2024. The U.S. Securities and Exchange Commission gave the green light for the trading of 11 Bitcoin spot ETFs, signifying a significant milestone in the history of Bitcoin.
Bitcoin, initially designed as a decentralized, trustless, peer-to-peer network, has undergone substantial transformations over the past fifteen years.
The most prominent BTC spot ETF, known as IBIT, currently boasts a market capitalization of $56.66 billion, calculated as the price multiplied by the shares outstanding.
Analysis of the spot ETF netflow table revealed that there were consistent inflows into BlackRock’s iShares Bitcoin Trust during the last two weeks of trading. These inflows signified a prevailing positive sentiment among investors.
Substantial Profits for Bitcoin ETF Investors
Considering that IBIT is the largest spot ETF, focusing on its price chart is pivotal. Notably, trading commenced on January 11, with a peak price of $30 on the first day.
If an investor had purchased $1,000 worth of shares at that time, how much profit would they have realized by now?
Ignoring factors like trading commissions, taxes, or maintenance fees, acquiring shares at the peak price on January 11 would have yielded a 100.7% appreciation, translating to a value of $2,007.
In contrast, buying at $22.02, the lowest point on January 23, would have resulted in a 173.46% increase before expenses, turning the initial $1,000 into $2,734.6.
Weekly Analysis Points Towards $152k
Fibonacci retracement levels indicated the possibility of further gains. A positive market structure was observed on the weekly chart, with nearly a month of consolidation occurring below the $100k threshold.
In recent weeks, Bitcoin has continued its upward ascent and managed to convert the $103.8k level into a support zone. A week-ending closure above this level would signal a strong bullish trend.
Future bullish targets were identified at $122.4k, $133.9k, and $152.5k. Investors in Bitcoin, whether via spot ETFs or direct holdings, are expected to experience heightened optimism in the forthcoming months.