{"id":9941,"date":"2024-01-19T11:26:01","date_gmt":"2024-01-19T09:26:01","guid":{"rendered":"https:\/\/forklog.com\/en\/experts-discuss-the-adverse-impact-of-etfs-on-bitcoins-price\/"},"modified":"2024-01-19T11:26:01","modified_gmt":"2024-01-19T09:26:01","slug":"experts-discuss-the-adverse-impact-of-etfs-on-bitcoins-price","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/experts-discuss-the-adverse-impact-of-etfs-on-bitcoins-price\/","title":{"rendered":"Experts Discuss the Adverse Impact of ETFs on Bitcoin&#8217;s Price"},"content":{"rendered":"<div class=\"wp-block-text-wrappers-keypoints article_keypoints\">\n<ul class=\"wp-block-list\">\n<li>Analysts note price consolidation and liquidity redistribution in the exchange-traded funds market. <\/li>\n<li>However, Bitcoin may experience further correction as Grayscale&#8217;s GBTC investors take profits.<\/li>\n<\/ul>\n<\/div>\n<p>Despite high trading volumes of spot Bitcoin ETFs, the asset&#8217;s price is showing a negative trend. On the evening of January 18, the price of the leading cryptocurrency fell below $42,000.\u00a0<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-eu.googleusercontent.com\/kbIhx8x_RWVM1Cbv_4tkzMopzJ9b9eafqiKMuxHzpg-03msjxrs7bfqotn_37x12eN5DGldJ2y_j85ia7F4eVzrA9ogTG9akWLIyU5sXhj2ca3DA8nNCmovj5271lg1EUiU4ZomTjrgqW_csOluQNrY\" alt=\"Experts discuss the adverse impact of ETFs on Bitcoin's price\"\/><figcaption class=\"wp-element-caption\">15-minute BTC\/USDT chart on Binance. Data: <a href=\"https:\/\/www.tradingview.com\/symbols\/BTCUSDT\/\">TradingView<\/a>.<\/figcaption><\/figure>\n<p>Meanwhile, the assets under management of Bitcoin-based exchange-traded funds in the US reached 632,000 BTC, or about $27 billion. This instrument has already surpassed silver-based products in this regard.<\/p>\n<p>Glassnode <a href=\"https:\/\/forklog.com\/en\/news\/bitcoins-correction-linked-to-profit-taking-by-holders-say-analysts\">believes<\/a> that holders triggered a pullback from the $49,000 highs by taking profits, including on derivatives, following ETF news.<\/p>\n<h2 class=\"wp-block-heading\"><strong>Consolidation<\/strong><\/h2>\n<p>In the short term, a period of selling was expected after the approval of Bitcoin funds, stated Nansen&#8217;s chief researcher Aur\u00e9lie Barter in a conversation with <a href=\"https:\/\/www.theblock.co\/post\/273375\/how-the-new-spot-bitcoin-etfs-might-impact-crypto-market-dynamics\">The Block<\/a>.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cAt the moment, this looks like price consolidation before a resumption of growth,\u201d she added.\u00a0<\/p>\n<\/blockquote>\n<p>This is evidenced by risk management indicators from the analytics company. One of them points to a low percentage of stablecoins compared to other assets in the wallets of <span data-descr=\"this is how Nansen designates profitable traders whose activity it tracks\" class=\"old_tooltip\">\u201csmart money\u201d<\/span>.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-eu.googleusercontent.com\/Q5QgsUii4c6MXFFHNTFZmJGwNfLfOeT1rDmFSdX7tYDiFSMMALO0SWW--VcQRbjprxFmDjTT_qYL5vHTYlksg_JRUF9EY1dgOtUll-2Fp_BBQnkt0ppw6m0hu4HD4u5EXQua-3l5drdaW7XhpsWN5Os\" alt=\"Experts discuss the adverse impact of ETFs on Bitcoin's price\"\/><figcaption class=\"wp-element-caption\">Stablecoin ratio in \u201csmart money\u201d addresses. Data: <a href=\"https:\/\/query.nansen.ai\/public\/dashboards\/WZmEJw8LuEPn9QxCcCLxjJxj5SiInnglHcuU3q5p?org_slug=default\">Nansen<\/a>.<\/figcaption><\/figure>\n<p>Barter noted a possible redistribution of Bitcoin supply from whales to new buyers, making the market structure \u201cless skewed\u201d towards large holders.\u00a0<\/p>\n<p>According to her, there has been much speculation about a decrease in Bitcoin volatility following a potential influx of new liquidity:\u00a0<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cFor the first cryptocurrency, we would expect some similar effect, but since this asset class remains speculative, large drawdowns are likely to still occur.\u201d\u00a0<\/p>\n<\/blockquote>\n<p>The analytics firm is also concerned about potential actions by the US Federal Reserve, which \u201cmay disappoint markets by lowering interest rates less than expected.\u201d<\/p>\n<h2 class=\"wp-block-heading\"><strong>Fund Pressure<\/strong><\/h2>\n<p>According to a <a href=\"https:\/\/www.theblock.co\/post\/273432\/bitcoin-price-jpmorgan-gbtc-profit-taking\">report<\/a> by JPMorgan, the price of digital gold may correct further if Grayscale&#8217;s GBTC fund investors continue to take profits.\u00a0<\/p>\n<p>Last week, the outflow from the product amounted to $1.5 billion \u2014 analysts expect it to increase to $3 billion. If the forecast is confirmed, Bitcoin will maintain a negative trend in the coming weeks.\u00a0<\/p>\n<p>JPMorgan noted that profits are being taken by investors who bought GBTC at a significant discount last year.\u00a0<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201c[Investors] made significant profits after converting the trust into an ETF, fully exiting the Bitcoin space rather than switching to cheaper spot ETFs,\u201d the company emphasized.<\/p>\n<\/blockquote>\n<p>The outflow of funds also puts additional pressure on the Grayscale fund, forcing the issuer to reduce the management fee. Experts believe the current fee of 1.5% is \u201ctoo high\u201d compared to products from other companies.<\/p>\n<p>Meanwhile, Rachel Aguirre, head of BlackRock&#8217;s iShares products in the US, <a href=\"https:\/\/www.bloomberg.com\/news\/videos\/2024-01-17\/ibit-inflows-coming-from-different-directions-aguirre-video\">stated<\/a> that the company is seeing inflows into its IBIT from various investors.<\/p>\n<p>When asked if funds are coming from GBTC, Aguirre emphasized \u201cinterest from both retail and independent market participants.\u201d<\/p>\n<p>According to Bloomberg exchange analyst Eric Balchunas, BlackRock&#8217;s instrument leads in terms of fresh capital inflow.\u00a0<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">LATEST: Day Four was a good one, the ROLLING NET FLOWS grew to +$1.2b after the Newborn Nine pulled in $914b on Wed, by far their best day yet, overwhelming the $450 out of <a href=\"https:\/\/twitter.com\/search?q=%24GBTC&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$GBTC<\/a>. The &#8216;Nine&#8217; have now taken in $3b and traded $5.4b in first four days (abnormally high <a href=\"https:\/\/twitter.com\/hashtag\/s?src=hash&#038;ref_src=twsrc%5Etfw\">#s<\/a>). <a href=\"https:\/\/twitter.com\/search?q=%24IBIT&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$IBIT<\/a> is\u2026 <a href=\"https:\/\/t.co\/mYBLggYlYK\">pic.twitter.com\/mYBLggYlYK<\/a><\/p>\n<p>\u2014 Eric Balchunas (@EricBalchunas) <a href=\"https:\/\/twitter.com\/EricBalchunas\/status\/1747956852619366616?ref_src=twsrc%5Etfw\">January 18, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>In the first four days, IBIT&#8217;s volume increased by $1 billion. The second largest growth was seen in Fidelity&#8217;s fund (FBTC) \u2014 $882 million. The net flow for all spot Bitcoin ETFs was $1.25 billion.<\/p>\n<p>JPMorgan analysts also expressed skepticism regarding the approval of <span data-descr=\"US Securities and Exchange Commission\" class=\"old_tooltip\">SEC<\/span> spot Ethereum-ETH in May this year, but they do not rule out a positive outcome.\u00a0<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cIn any case, given Ethereum&#8217;s transition from Proof-of-Work to Proof-of-Stake and the negative impact this transition has had on network decentralization, ETH now resembles other cryptocurrencies that the regulator considers securities,\u201d added JPMorgan.<\/p>\n<\/blockquote>\n<p>On January 19, the SEC postponed its decision on Fidelity Investments&#8217; application to launch a spot Ethereum ETF by 45 days \u2014 until March 6.\u00a0<\/p>\n<p>JPMorgan analyst Nikolaos Panigirtzoglou stated that the Commission first <a href=\"https:\/\/forklog.com\/en\/news\/bitcoin-dips-below-43000-amid-etf-criticism\">needs to classify ether as a commodity<\/a>, not a security. He estimated the probability of this by May at no more than 50%.\u00a0<\/p>\n<p>Earlier, BlackRock CEO Larry Fink <a href=\"https:\/\/forklog.com\/en\/news\/blackrock-ceo-recognizes-value-in-spot-ethereum-etf\">stated<\/a> that he \u201csees value\u201d in a spot Ethereum fund, calling it a step towards tokenization.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Analysts note price consolidation and liquidity redistribution in the exchange-traded funds market. However, Bitcoin may experience further correction as Grayscale&#8217;s GBTC investors take profits. Despite high trading volumes of spot Bitcoin ETFs, the asset&#8217;s price is showing a negative trend. On the evening of January 18, the price of the leading cryptocurrency fell below $42,000.\u00a0 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":9940,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[18,569,1150],"class_list":["post-9941","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitcoin","tag-etf","tag-news-plus"],"aioseo_notices":[],"amp_enabled":true,"views":"29","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/9941","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=9941"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/9941\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/9940"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=9941"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=9941"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=9941"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}