BTC Struggles as SEC Approves Bitcoin ETFs
The approval of spot Bitcoin ETFs by the US Securities and Exchange Commission (SEC) has not translated into significant price gains for BTC. However, these ETFs have still managed to attract a large number of investors, resulting in record trading volumes during the first two days of trading.
Bitcoin ETFs See Record Trading Volume
The collective trading volume of spot Bitcoin ETFs reached approximately $8 billion. On the first day, the volume peaked at around $4.6 billion, followed by over $3 billion on the second day. The most actively traded spot Bitcoin ETF during this period was Grayscale’s GBTC, with a total trading volume exceeding $4 billion.
New Issuers Also Experience Significant Trading Activity
BlackRock, Fidelity, Bitwise, and other new issuers saw considerable trading activity in their Bitcoin ETFs. BlackRock CEO Larry Fink praised the early success and viewed BTC as an asset class rather than a currency.
Analysts Debunk Claims of Flop Trading Activity
Some analysts argued that the early trading activity was a flop because most of it came from Grayscale outflows. However, Bloomberg analyst Jeremy Seyffart dismissed these claims as “clickbait” and unrealistic expectations. He emphasized that the long-term impact and potential for bridging different exposures should be considered.
BTC Price Falls Following Sell Pressure
In the midst of heightened trading activity, Grayscale transferred 4,000 BTC valued at $183 million to Coinbase. This transaction may indicate deposits resulting from the sale of Grayscale’s ETF. Additionally, on-chain analyst JA Maartunn noted two sell orders totaling 1,900 BTC that could impact the Bitcoin market.
Hot Take: BTC Price Drops but Rebounds
The recent sell pressure and Grayscale’s transfers affected BTC’s price, causing it to drop by over 7% to under $42,000. However, the price rebounded to $42,781 at the time of writing. It remains to be seen how the market will continue to react to the introduction of Bitcoin ETFs.
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