Bitcoin Spot ETFs: The Impact One Month Later
2024 started with excitement as Bitcoin spot ETF approvals were on the horizon and the cryptocurrency market was in an uptrend. However, the debut of these ETFs caused a 20% correction in Bitcoin. The companies behind the ETFs continued to buy the dip, increasing their BTC holdings. Now, one month later, let’s examine how much BTC each ETF has accumulated and how this new demand may impact Bitcoin price.
Bitcoin spot ETFs: sell the news
On January 10, 2024, the US Securities and Exchange Commission approved several spot Bitcoin ETFs for the first time. Contrary to expectations, BTC price experienced a 20% drawdown following the ETFs going live. Natural profit-taking and other factors led to a pullback. However, ETF providers took advantage of lower prices to stock up on BTC.
ETF holdings one month later
Despite redemptions, Grayscale remains the largest holder of BTC in the ETF space. BlackRock’s iShares Bitcoin Trust has acquired over 70,000 BTC, while Fidelity has amassed over 60,000 BTC. ARK and Bitwise each added more than 15,000 BTC. In total, new ETF providers (excluding Grayscale) have accumulated over 174,000 BTC.
BTC impact by the numbers
This accumulation represents nearly 1% of the circulating supply of Bitcoin. As demand increases, ETF providers will need to buy more BTC. With limited supply available, they will have to bid higher to satisfy customer needs.
Understanding supply versus demand
In markets, supply versus demand determines price trends. Ongoing demand with limited supply could be the catalyst for the crypto market. If Bitcoin continues its uptrend, you can strategically profit from the price action through PrimeXBT Crypto Futures.
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PrimeXBT Crypto Futures offers adjustable leverage, low fees, high liquidity, and more. The multi-asset wallet system allows trading of over 30 cryptocurrencies and 50 Global Markets. You can fund an account with BTC to stay exposed during a bull run and trade intraday volatility in altcoins using crypto as collateral. With various strategies, you can capitalize on the cryptocurrency trend using PrimeXBT Crypto Futures.
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