The Arrival of Bitcoin ETF Shook the Market; Here’s how
Bitcoin ETF started trading on January 11 and the crypto market continues to witness its consequences. Following the launch of the Bitcoin ETF, issuers competed aggressively on fees. Many have entered a price war, luring investors with lower fees and promotional periods and waivers.
Meanwhile, trading of the highly anticipated spot Bitcoin ETF initially led to Bitcoin’s slight price increase. While investors expected the price to exceed $50,000, the price fell the next day.
Bitcoin price action
of Bitcoin The slow price movement continues with the king coin falling below $40,000 on January 22. Most analysts do not yet see BTC’s lackluster price action as a cause for concern. Meanwhile, Bitcoin ETFs managed to reach just under $20 billion in trading volume last week, according to data from Bloomberg.
As a result of significant trading volume, Bitcoin has also managed to overtake Silver as the second largest commodity ETF player. Now the king coin is right behind gold in the commodity market.
Also Read: Bitcoin Price: Will Bitcoin Price Fall Below 34 Lakh This Month?
GBTC outflows worry the market
However, what worries the market is Grayscale’s market dominance, which lasted only one day. On Monday, Grayscale GBTC It witnessed an outflow of $640 million, contributing to a total net outflow of $3.4 billion amid a broader market downturn.
Source: arkham Intelligence dashboard
GBTC had a 13% decline in its outstanding shares as of Tuesday, according to Bloomberg’s Eric Balchunas.
Despite this, the launch of the Bitcoin ETF paves the way for more potential crypto ETFs in the coming days. Conversation about confirmation Ethereum ETF, It gained momentum with the SEC set to decide by May.
This also represents an important step towards wider adoption of cryptocurrency and increased participation of new investors. Bitcoin has achieved a degree of legitimacy in the regulated finance space, which could pave the way for greater acceptance among both users and regulators.
✓ Share:
Shraddha’s professional journey spans more than five years; During this time, he worked as a financial journalist, providing information about the business world, markets and cryptocurrencies. As a reporter, he placed particular emphasis on learning about market interaction with emerging technologies.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
#Arrival #Bitcoin #ETF #Shook #Market #Heres