Summary
The launch of the Bitcoin spot ETF has been a historic event, with huge trading volume and strong post-launch performance. However, there have been delays and incomplete data in reporting the inflows and outflows of the ETF. On-chain data from intelligence firm Arkham suggests that there have been significant outflows from Grayscale to Coinbase’s Prime OTC desk, but the reported outflows do not match the on-chain data. It is unclear how much bitcoin Grayscale will ultimately sell, but speculation suggests that the high expense ratio of 1.5% compared to other ETFs may cause some investors to swap ETFs rather than sell. Despite the outflows from Grayscale and whale selling, bitcoin has managed to hold support at $40,000. The monthly Ichimoku cloud is flipping bullish, which is a highly bullish signal. The average daily buying pressure, including GBTC selling, has been more than $200 million, indicating strong demand for bitcoin.
Key Points
1. The Bitcoin spot ETF launch was the largest launch of an ETF product in history, with first-day trading volume of $4.6 billion and relatively strong volume compared to other product launches.
2. On-chain data from intelligence firm Arkham shows significant outflows from Grayscale to Coinbase’s Prime OTC desk, indicating that Bitcoiners are supplementing slow Traditional Finance (TradFi) data by tracking flows on-chain.
3. The selling pressure from Grayscale’s Bitcoin Trust (GBTC) may be drawing to a close, as the discount to Net Asset Value (NAV) has decreased and GBTC holders may choose not to sell until the next rally due to tax implications and potential unrealized gains.