The cryptocurrency landscape experienced a whirlwind of events last week, with the spotlight firmly on the approval of the first Spot Bitcoin ETF in the United States. On Tuesday, January 9, 2024., excitement surged through the market on news that the SEC had finally greenlit a Spot Bitcoin ETF, only for the agency to announce minutes later that this approval announcement was a result of a compromised account, casting a shadow of uncertainty over the crypto community. However, the drama took a positive turn on Wednesday, when the SEC officially confirmed the approval of the Bitcoin ETF, marking a historic moment for cryptocurrency investment in the U.S​. Despite a 70% rise in Bitcoin’s price from October due to anticipation of SEC approvals, the price has dipped by about 6% post-approval.

The anticipation culminated on Thursday, when the newly approved Spot Bitcoin ETFs began trading, astonishingly surpassing $4.6 billion in volume on their first day, signaling strong investor interest and confidence in this new investment. Despite the initial euphoria, the inflow to Spot Bitcoin ETFs experienced a decline on the second day of trading.

In the first three days following their debut, Bitcoin ETFs have attracted houndred millions in investments, showcasing cautious optimism from investors for these novel financial instruments that aim to mirror the cryptocurrency’s performance. Leading asset managers, including BlackRock, Franklin Templeton, and Invesco, have reported net inflows totaling $871 million, as per CoinShares data. BlackRock spearheads this influx with $723 million, while Fidelity follows with substantial inflows of its own, despite Grayscale experiencing $1.18 billion in outflows amidst its transformation of a $28 billion Bitcoin fund into an ETF.