Spot Bitcoin ETF Approval Triggers Selling Pressure
After the U.S. Securities and Exchange Commission (SEC) approved Spot Bitcoin exchange-traded funds (ETFs), many cryptocurrency traders saw it as an opportunity to sell, according to South Korean data firm CryptoQuant.
The launch of Spot Bitcoin ETF products saw record volumes, and Coinbase exchange experienced high OTC desk transfer volumes. Most Bitcoin ETFs are trading at a premium to spot Bitcoin, as reported by CryptoQuant.
CryptoQuant predicts that the approval of Bitcoin ETFs would result in a decline in price, with a decrease of up to 15% since January 11. Currently, Bitcoin is finding support within the $41,000 and $43,000 range, but a downtrend is still possible.
CryptoQuant suggests that on-chain metrics and indicators indicate that the price correction may not be over yet. Short-term traders and large Bitcoin holders are still selling significantly in a “risk-off” environment.
Massive Inflows for US Spot Bitcoin ETFs
The spot Bitcoin ETFs have experienced huge inflows, with a cumulative trading volume of nearly $10 billion within just three days. The standout performer among the spot Bitcoin ETFs is Grayscale’s GBTC, which recorded a three-day trading volume of $5.174 billion. BlackRock’s IBIT and FBTC also saw substantial engagement, reaching $1.997 billion and $1.479 billion in trading volume respectively. These three ETFs accounted for a total trading volume of $9.771 billion, indicating strong investor interest in the cryptocurrency market.
ETFs Garner Attention at Davos
The World Economic Forum (WEF) in Davos has brought together influential figures from politics and business to discuss upcoming trends in business. This year, the approval of ETFs by the SEC has sparked optimism among crypto attendees at the event. Sebastien Borget, COO and co-founder of The Sandbox, stated that the ETF approval symbolizes a new era and recognition of the potential of cryptocurrency and blockchain.
Hot Take: Spot Bitcoin ETF Approval Triggers Selling Pressure
The recent approval of Spot Bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) resulted in a “sell-the-news” event. Many traders took advantage of this opportunity to sell their cryptocurrencies. While the launch of Spot Bitcoin ETF products saw record volumes and high OTC desk transfer volumes on Coinbase, most Bitcoin ETFs are trading at a premium to spot Bitcoin. However, there are indications that the price correction may not be over yet, as on-chain metrics suggest further downside potential. Nevertheless, strong investor interest is evident with massive inflows into US Spot Bitcoin ETFs. The approval of ETFs has also generated optimism among crypto attendees at the World Economic Forum in Davos, highlighting the growing recognition of cryptocurrency and blockchain technology.
By
By
By
By
By