How to Trade BTC Through iShares Bitcoin Trust (IBIT) Shares?
How to Trade BTC Through iShares Bitcoin Trust (IBIT) Shares?
Very significant, on January 11, 2024, trading began for 11 newly created Bitcoin ETFs. Back in June 2023, several companies, including BlackRock, filed applications with the U.S. Securities and Exchange Commission (SEC) to create their own ETF funds. The main goal of these ETF funds was to solve the issue of direct investment in Bitcoin. However, all obstacles have now been cleared, and investors can confidently invest in these assets, knowing that they can use their regular brokerage accounts for stock market trading without the need for accounts on various crypto exchanges and have regulatory insurance, unlike direct assets in the crypto market. In this article, we will explain what IBIT is, why its shares are worth considering, what investment returns can be expected over the year, and where to trade this asset.
What is IBIT?
IBIT is the stock of the iShares Bitcoin Trust (ETF), owned by BlackRock. For example, when purchasing IBIT shares, according to NASDAQ's statement, Coinbase Custody Trust Company will serve as the custodian of the Bitcoin assets in the fund, and Bank of New York Mellon will hold the fiat assets, meaning each IBIT share is backed by BTC, and shares will be traded on NASDAQ.
What Investment Return Can Be Expected Over the Year?
Looking at the numbers, it's clear how much interest this event generated in the financial world: within the first two days, shares worth over $7.7 billion were sold. With the total cryptocurrency market estimated at $1 trillion, we can say that expectations were high for this ETF launch. In general, the price of BTC rose moderately just before and during this event. However, there was a “Sell the Fact” reaction, and once the event concluded, many players decided to lock in their positions, both in the stock market and the crypto market, leading to another correction and a search for a fair price for the asset.
It is too early to predict a further rise in the assets in the coming months, as recent inflation and labor market indicators have adjusted U.S. indices. And where there’s negativity in the stock market, there’s a double negative effect in the crypto market, which has currently led to a BTC price of $42,600 at the time of writing this article.
Of course, in the future, we can expect the launch of an Ethereum (ETH) ETF, so a small pause in the bull cycle for asset accumulation and adjustment of U.S. indicators may occur until March-April of this year. But looking at the annual outlook, it can definitely be said that IBIT shares are one of the most interesting long-term assets to hold, given the right price entry points.
Why IBIT Shares?
Because BlackRock's capital currently totals around $20 trillion, and who better than them to know the promising investment directions for allocating their capital? If they have created this fund and are actively lobbying their terms with crypto exchanges, we only need to recall the scandals with FTX, Binance, and aggressive moves against Coinbase with the aim of controlling it. These guys know what they’re doing and how to profit from it.
For now, everyone is content with this arrangement—the SEC and the U.S. Treasury Department can bring cryptocurrency-held capital into the open. Meanwhile, BlackRock and other players can almost monopolistically sell their shares backed by crypto assets, and the price of Bitcoin doesn’t directly affect the price of these shares.
Where Can You Buy IBIT Shares?
As we mentioned earlier, after deciding on your trading strategy for these newly created ETFs (short-term speculation or long-term investment), weighing all the risks, and reviewing all the official information about IBIT, you can move on to opening a trading account and finding a reliable broker who will offer you the best conditions for trading this and other U.S. stock market assets.
Source: XX. Trading IBIT Shares on the Alpha Trader Pro Trading Platform.
On all types of accounts opened through our company from the very beginning of the listing, you have the opportunity to trade shares of the newly created Bitcoin ETFs. The conditions provided by our partners allow you to trade both during market sessions and for long-term investing. If you're looking for a proprietary account and want to implement your trading idea using the company’s funds without risking your own deposit, we would be happy to welcome you as a participant in our prop firm and gladly provide consultation on any questions regarding our account conditions.