Record-Breaking ETF Launch
The launch of Bitcoin ETFs saw unprecedented activity, with a total volume of $4.6 billion and over 700,000 individual trades. Major players such as Grayscale, BlackRock, Fidelity, ARK 21Shares, and Bitwise participated in the market.
Experts like Nate Geraci and Eric Balchunas commented on the impressive trading volume and grassroots action in the ETF market.
Bitcoin Price Cannot Maintain Its Gains
Despite the remarkable ETF launch, the Bitcoin price struggled to surpass $50,000 and remained stagnant around $46,000. Dan Ripoll suggested that compliance delays and brokerage restrictions may be behind the muted price response. Vanguard’s decision to block its customers from buying BTC Spot ETFs further complicates the adoption of Bitcoin ETFs.
Matt Dines pointed out that the capital behind yesterday’s wave of trading volume has not yet started lifting offers in the UTXO market.
Rotation Plays And GBTC Selling
There are reports of investors rotating out of Bitcoin ETF proxies and mining stocks into better proxies like spot ETFs. Grayscale accounted for a significant portion of the trading volume, indicating that much of it could have been sell orders. The discount on GBTC closed with the ETF launch, making it less attractive compared to spot Bitcoin ETFs.
Hot Take: Factors Influencing Bitcoin Price Surge
The lack of a significant surge in the Bitcoin price despite the record-breaking ETF launch can be attributed to various factors. These include GBTC selling, compliance delays at brokerage firms, restrictions on retail clients by major broker-dealers, fund rotations, and ideological stances by financial institutions. These factors combined to keep the Bitcoin price stagnant around $46,000.
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