bitcoin price (Bitcoin) It fell another 4.5% on Thursday to a one-month low of $40,800. The decline is roughly in line with the CoinDesk 20 Index, which tracks the world's largest and most liquid cryptocurrencies, which is currently down 4.6% over the past 24 hours.
Since the newly approved Spot Bitcoin ETF began trading on January 11th, the price of Bitcoin is currently down about 13% after a very short period of spikes.
Looking at data updated as of yesterday, the new spot ETF issuer added over 68,000 Bitcoin in its first week of activity. However, Grayscale's GBTC shed about 40,000 Bitcoin, resulting in a net addition to the Bitcoin ETF of about 28,000 Bitcoin.
K33 Research Analyst Vetle Lunde Many spot Bitcoin products were already being traded around the world long before U.S. regulatory approval, he said. In fact, he said there are currently more than 864,000 Bitcoins held in exchange-traded products (ETPs) around the world, and so far the addition of U.S. cars has been relatively small. Ta.
In addition to the GBTC exit, Runde also noted that Canadian and European ETPs have seen significant outflows over the past week as investors took profits and put money into cheaper U.S. ETFs.
And then there's the ProShares Bitcoin Strategy ETF (BITO), which recently surpassed $2 billion in assets under management. Although the futures-based ETF does not hold any Bitcoin, it accounts for 36% of the open Bitcoin contracts on CME Group exchanges, Lunde said. He added that futures-based Bitcoin ETFs together account for 48% of CME's total Bitcoin open interest.
Runde said BITO and other futures-based funds are seeing outflows and will have to unwind (sell) long positions in the futures market, which could put further pressure on Bitcoin prices. Ta.
