Summary
Bitcoin has dropped over 15% to around $41,300 since the first US spot BTC ETFs listed last week, with $1.5 billion flowing out of the Grayscale Bitcoin Trust (GBTC), according to JPMorgan. Analysts believe that GBTC investors who had previously bought the fund at a discount to NAV in anticipation of its eventual ETF conversion are now exiting the bitcoin space entirely. This selling pressure could put further downward pressure on bitcoin prices. On the other hand, analysts at Coinbase believe that ether (ETH) could soar in 2024 due to hopes of a spot ETH ETF listing and Ethereum’s upcoming Dencun upgrade. ARK Invest has sold more shares in the ProShares Bitcoin Strategy ETF (BITO) and swapped them for its own spot bitcoin ETF (ARKB), as it pivots towards its own product. Glassnode’s chart shows a net selling trend by long-term bitcoin holders, indicating a decrease in their supply.
Key Points
1. Bitcoin has experienced a significant drop of over 15% since the listing of the first U.S. spot BTC ETFs, with $1.5 billion flowing out of the Grayscale Bitcoin Trust (GBTC). This selling pressure from GBTC investors who had previously bought the fund at a discount to NAV and were positioning for its eventual ETF conversion is causing further downward pressure on bitcoin prices.
2. Ethereum (ETH) is expected to see a surge in 2024 due to hopes of a spot ETH ETF listing and the upcoming Dencun upgrade, which aims to improve the scalability of the Ethereum mainnet. The approval of bitcoin ETFs in the U.S. has led to increased interest in ETH ETFs, and Ethereum’s dominant position in the DeFi space and the potential for extra returns through staking are also contributing to its bullish outlook.
3. ARK Invest has sold $15 million worth of shares in the ProShares Bitcoin Strategy ETF (BITO) and swapped them for its own spot bitcoin ETF (ARKB). ARK had previously sold off its shares in the Grayscale Bitcoin Trust in anticipation of the approval of spot bitcoin ETFs in the U.S. With the approval now in place, ARK is shifting its focus to its own product.