Following the launch of spot Bitcoin ETFs, Bitcoin (BTC) has experienced significant selling pressure, with prices dropping below $41,000, marking a 3.45% loss in one night and over 10% for the week. Currently, BTC’s market value stands at $805 billion, with a trading price around $41,100.
The Grayscale Bitcoin Trust (GBTC) saw substantial sell-offs post-ETF launch, leading to Grayscale liquidating a large number of Bitcoins to balance the situation. Outflows from GBTC last week exceeded $2.2 billion. Access COINTURK FINANCE to get the latest financial and business news.
Crypto analyst Scott Melker stated that Grayscale’s actions are not driving the market down; the GBTC sales were triggered by individuals selling their GBTC holdings, a fundamental aspect of ETF-related mechanics, not malicious intent.
Despite these developments, BTC prices have been facing downward selling pressure recently. However, trading volumes have surged since the introduction of spot Bitcoin ETFs, with BlackRock’s ETF alone attracting over a billion dollars within four days.
Eric Balchunas highlighted a 34% increase in volume for nine Bitcoin ETFs compared to the previous day, noting that such market entries usually lead to daily declines, which has not been the case for Bitcoin ETFs. The introduction of these ETFs has resulted in unexpected volume increases, with all but one ETF showing growth. Balchunas remains optimistic about the performance and future of these nine ETFs, which have recently surpassed $27.5 billion, outpacing silver and garnering significant interest.