The cryptocurrency market has been volatile since the launch of eleven spot Bitcoin ETFs in the U.S. on January 10th. Grayscale’s GBTC saw significant outflows, but CryptoQuant CEO Ki Young Ju argues that the price drop in Bitcoin is not due to GBTC outflows but rather to selling pressure in derivative markets. Ju suggests that the current situation indicates the start of an uptrend, as active OTC markets do not impact the price and accumulation happens when on-chain OTC and spot ETF activities decline.
Crypto expert Fred Krueger counters concerns about GBTC outflows, highlighting that the key performance indicator (KPI) should be the inflow to the new spot ETFs. He believes that concerns should focus on long-term gains, as industry giants like BlackRock, Fidelity, and Bitwise are not swayed by short-term market movements.
Samson Mow assures that Bitcoin’s demand from various sources, including individuals, corporations, nation-states, and ETFs, will outweigh any selling pressure. He advises stakeholders to adopt a rational perspective and focus on the mathematics behind market dynamics.
Grayscale’s significant role in the crypto market means that outflows from its ETF can impact market stability. The collapse of the FTX exchange, which sold 1 billion GBTC shares, cast a shadow over the market. Comparisons with competitors like BlackRock and substantial outflows from Grayscale’s GBTC have increased market pressures, with some critics describing GBTC as a “massive wrecking ball of toxic waste.”
Despite initial optimism following the SEC’s approval of eleven spot Bitcoin ETFs, the industry faces uncertainty. However, investor confidence seems to be recovering as Bitcoin’s price rebounds above $40,000 after a drop to $38,500.