Contents
Toggle
Bitcoin Falls Below $41,000
SEC Delays Ether Spot ETF Application
After the approval of the Bitcoin spot ETF, significant downward pressure was faced by the market due to “sell the news” and “GBC dumping,” with Bitcoin even falling below $41,000 last night.
In regards to the current trend, Morgan Stanley analyst Nikolaos Panigirtzoglou and his team stated that if investors of Grayscale’s Bitcoin spot ETF (transitioned from GBTC) continue to take profits, the Bitcoin price may face additional downward pressure in the coming weeks.
Due to the significantly higher management fees charged by GBTC compared to other ETF competitors, this fund with over $20 billion in assets under management has continuously faced capital outflows since its successful transition. According to Arkham data, last night Grayscale transferred an additional 9,840 BTC (worth about $418 million) to Coinbase Prime. Since the successful transition of GBTC, Grayscale has transferred a total of 41,478 BTC to Coinbase Prime, with a total value of about $1.78 billion.
However, it is important to emphasize that the net flow of all ETFs (including GBTC) since the opening is actually a net inflow of $1.29 billion, indicating that traditional financial markets are not disinterested in Bitcoin investments. The current decline in coin price is only due to the larger impact of the outflow of funds from GBTC on the Bitcoin secondary market.
On the other hand, there has been no substantial progress regarding the anticipated Ether spot ETF. According to documents submitted on Thursday, the U.S. Securities and Exchange Commission (SEC) has postponed the application for Fidelity’s Ether spot ETF. The SEC stated in the document:
The subsequent key date will be in May when the SEC must make a decision to approve or deny three Ether ETFs.
The potential approval of the Ether spot ETF has driven the recent rebound in the ETH/BTC exchange rate, but CoinShares researcher Luke Nolan pointed out during an interview that the probability of the Ether spot ETF being approved in 2024 is about 70%. However, Luke Nolan added that he believes the market may have reacted too early and the earliest possible approval may not occur until the fourth quarter of 2024, making the likelihood of approval before that low.
(
This article is authorized reprint from GT Radar.
)
About GT Radar
GT Radar is a cryptocurrency fully automated trading platform specializing in “multi-strategy auto-copying.”
With “multi-strategy auto-copying framework” as the core technology, it assists investors in automatic trading and management through diverse strategies. It effectively reduces trading risks, enhances investment returns, avoids chasing highs and killing lows, cultivates trading discipline, and achieves true rational investment and professional trading.
Experience the one-click auto-copying trading tool of GT Radar now.
Join the GT Radar discussion group.
