Bitcoin is hovering just below $40,000 as the market tracks the grayscale outflow.
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The price of rose above $40,000 at several points on Wednesday but hovered just below that level as market observers continued to watch the selling of Grayscale’s spot Bitcoin ETF.
According to The Block’s pricing page, the price of the world’s largest cryptocurrency by market capitalization was $39,672 at 4:37 PM ET. Bitcoin price is up 1.3% in the last 24 hours, but Bitcoin price is down almost 14% in the last two weeks.
We’d like to summarize why the asset has fallen since the launch of the spot Bitcoin ETF earlier this month. On its first day of trading when new, the price topped $48,000. — Bitwise Executive Matt Hougan said on tuesday There has been an ‘expectation-led’ selling trend in recent days.
“This is not strictly speaking an ETF-led selloff. The ETF is a net buyer of Bitcoin,” he said. “This is a sell-off on ETF expectations. The market has outpaced ETF approval by investing in both spot Bitcoin and Bitcoin derivatives.”
ETF trading volume
The total volume of all spot Bitcoin ETFs to date is over $20 billion, according to data from The Block. Products offered by Grayscale, BlackRock, and Fidelity dominate, accounting for approximately 90% of total volume.
The majority of Grayscale’s trading volume consisted of investors selling funds that converted the company’s flagship GBTC fund.
Hougan believes the market expected there to be “more net inflows into ETFs than we’ve ever had.” He said the market is now “backing off that bet,” adding that “the market has overestimated the short-term impact of ETFs.”
On Wednesday afternoon, Eric Balchunas, senior ETF analyst at Bloomberg Intelligence. Post data to This shows that Grayscale’s trading volume is on pace to end the day at its lowest level since the new product began trading.
At the time of his post, Grayscale had generated about $463 million in trading volume, which was significantly lower than before. On the first day that spot Bitcoin ETFs were traded, Grayscale recorded $2.3 billion in transactions, data also showed.
“The decline in GBTC trading volume again today may be a sign that the selling has exhausted itself somewhat,” Balchunas said.
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