Bitcoin ETF: How Market is Responding to its Introduction?
The Bitcoin ETF started trading on January 11, and the crypto market continues to witness its implications. Following the launch of the Bitcoin ETF, issuers engaged in aggressive competition over fees. Many entered into a price war, attracting investors with lower fees and promotional periods with waive-offs.
Meanwhile, the trading of the much-awaited spot Bitcoin ETF led to the slight price rise of Bitcoin in the beginning. While investors were awaiting it to surpass the $50,000 mark, its price dipped the following day.
Bitcoin’s price movement
Bitcoin’s sluggish price action continues with the king coin falling under $40,000 on January 22. Most analysts do not see BTC’s underwhelming price action as a matter of concern just yet. Meanwhile, the Bitcoin ETFs managed to get just under $20 billion in trading volume in the last week, as per data by Bloomberg.
As a result of the significant trading volume, Bitcoin also managed to surpass Silver as the second-largest commodity ETF player. Now, the king coin is just behind Gold in the commodities market.
Also Read: Bitcoin Price: Will Bitcoin Price Fall Below 34k This Month?
GBTC outflows concern the market
However, what concerns the market is Grayscale’s market dominance, which lasted only one day. On Monday, Grayscale’s GBTC witnessed an outflow of $640 million, contributing to its total net outflow of $3.4 billion, amidst a broader market downturn.
According to Bloomberg’s Eric Balchunas, GBTC has experienced a 13% reduction in its outstanding shares as of Tuesday.
Despite this, the introduction of the Bitcoin ETF clears the ground for more potential crypto ETFs in the upcoming days. The conversation around the approval of Ethereum ETF, with the SEC’s decision deadline set for May, has gained steam.
This also represents a significant stride toward the broader adoption of cryptocurrency and increased participation from new investors. Bitcoin has achieved a degree of legitimacy within the space of regulated finance, which could pave the way for greater acceptance, among both users and regulators.
- Trump-Backed World Liberty (WLFI) Plans RWA Tokenization Paired with USD1 Stablecoin
- Stripe Eyes U.S. Banking Charter, Pioneers One-Click Stablecoin Issuance for Firms
- Breaking: Metaplanet Expands Treasury With 5,268 BTC Purchase, Climbs to 4th Largest Holder
- BREAKING: Nasdaq Files with US SEC to List BlackRock Bitcoin Premium Income ETF
- Mr Beast, Whales Buy ASTER Token Amid 20% Crash, What’s Next?
- XRP Price Outlook After Ripple CTO David Schwartz Resigns
- SUI Price Eyes $4.5 as Coinbase Futures Listing Sparks Market Optimism
- Chainlink Price Holds $20 Support Amid Tokenization With DTA Standard Progress – Is $47 Next?
- Analyst Predicts Dogecoin Price Surge as DOGE ETF AUM Hits $20M
- Ethereum Price Eyes $8,600 As Institutions And Whales Double Down
- Dogecoin Price Prediction – Chart Set-Up Highlights Perfect Buying Opportunity With Outflows Backing $0.45
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
