Following anticipated approvals, spot Bitcoin ETFs continue to trade, with significant market downturns prompted by a large reserve contraction due to GBTC sales. Bitcoin retreated to the $38,500 support level as expected. The focus now shifts to the reserve status of other issuers.
Trillion-dollar companies, including BlackRock, have launched spot Bitcoin ETFs that are witnessing substantial interest. Despite GBTC’s sales, volumes remain strong with satisfactory net inflows. Grayscale started the approval day with 619,162 BTC and now holds 552,681 BTC, following transfers of tens of thousands of BTC to Coinbase Prime, as clients took advantage of profitable sales opportunities due to long-term negative premiums.
Despite these sales, other ETFs, excluding Grayscale, experienced an inflow of 108,117 BTC. This indicates that net inflows persist even after GBTC’s sell-offs. BlackRock’s iShares spot Bitcoin ETF follows Grayscale with the second-largest BTC reserve of 39,925 BTC.
The surpassing of the 100,000 BTC threshold in reserves within just 9 trading days, excluding GBTC, appears promising for the future. If the daily reserve growth of 5-10 thousand BTC continues, the current selling pressure could soon subside.
In the long term, ETF reserves with the potential to reach a million could lead to a reduction in the supply of Bitcoin ready for sale on exchanges. Considering the upcoming halving event that will cut miner sales by half, ETF-supported supply scarcity could drive prices up by 2025. The ongoing trading of ETFs is expected to positively influence market sentiment, despite the recent drop to $38,500, which some viewed as a sell signal. The legitimacy gained by Bitcoin through U.S.-based ETFs and the desire of asset managers to offer these to their clients are pivotal developments.