After the approval of applications for spot trading of the Bitcoin ETF, the value of the largest cryptocurrency decreased by 13%.
According to yesterday’s data, new issuers of spot ETFs added more than 68,000 BTC in the first week of operation. However, Grayscale’s GBTC sold approximately 40,000 BTC, resulting in a trading difference of about 28,000 BTC with the Bitcoin ETF.
Vetle Lunde, a research analyst at K33, said in his blog that long before the approval of US regulators, there were already many spot Bitcoin products around the world. In fact, exchange-traded ETP products worldwide currently hold over 864,000 BTC.
Lunde also noted that in addition to entering the GBTC market, Canadian and European ETPs have also seen significant outflows of funds over the past week. This is because investors are taking profits and/or investing in cheaper U.S. ETFs.
And then there is the ProShares Bitcoin Strategy (BITO) ETF, which recently managed assets worth more than $2 billion. According to Lunde, although this futures ETF does not contain Bitcoin, it accounts for 36% of the open interest in BTC contracts on the CME Group exchange. Collectively, Bitcoin futures-based ETFs account for only 48% of the total interest in CME.
According to Lunde, due to the outflow of BITO and other futures funds, it is necessary to close a long position in the futures market. This situation could potentially put further pressure on the value of BTC.
By the time of writing this material BTC price is $41.1K.