Spot ETFs steal volumes from exchanges – Bitcoin price below $40,000

Bitcoin is still processing the situation after the launch of spot ETFs in the United States. On Friday, the price of Bitcoin came close to the important $40,000 mark, but over the weekend the rate rather stayed above $41,000. Yesterday, however, the daily candle closed below this line, and today the trend continues. Since the approval, the price has already fallen by almost 20%.

The price of Bitcoin rose above $49,000 shortly after the ETF was approved and has been falling ever since . The expectations of some analysts were not fulfilled and the price did not shoot to the moon. Not even all the tokens have been siphoned off the exchanges. On the contrary, their number is growing slightly there. But what the funds were able to absorb well are the volumes . This is nicely shown by the graph of the change in implied and realized volatility. Note that the spread has gone negative.

Why is GBTC selling so much bitcoin after ETF approval?

There is now a big massage in the media over the daily statistics of approved funds, and the daily sales of GBTC are also causing a stir. We have to realize that their fund was created by the transformation of an already functioning one that historically sold investments in this token.

After converting to a classic ETF, it allows owners to sell their shares at the current market price. Those shares that have historically sold at a premium of up to 48% . Part of the investors therefore withdraw their profits . The fund has already seen an outflow of USD 2.6 billion . Total AUM (Assets under management) is USD 25.4 billion.

How far can the price of Bitcoin fall?

If we look at the whole matter from a wider context, the price drop is a logical end to the buying frenzy driven by expectations after the approval of spot ETFs in the United States. The chart formed eight green weekly candles in a row after the applications were submitted. Of course, the price was primarily driven by speculation , and these short-term investors are now moving to the next possible pitch. The price was around $26,000 at the time of requests . I would take that as the lower limit for a possible decline.

Where are speculators moving?

The buying frenzy may shift to Ethereum and its spot ETFs . The applications have been submitted and the final approval date awaits us in about 4 months. That is, shortly after the Bitcoin halving . So we will see if speculators will bet on FOMO around ethereum or if they will bet on a reduced supply of new tokens in the market .

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