Bitcoin’s price has been on the decline since the approval of the launch of the Bitcoin Spot Exchange Traded Fund (ETF). It is a sharp difference from the market’s expectation that Bitcoin’s price will hit the previous high of $100,000, as it has rapidly emerged as an institutional asset group. Analysts say that the Grayscale Fund, one of the spot ETFs, is carrying out an intensive sell-off, which is dragging down overall investor sentiment.
According to CNBC on the 23rd (local time), Bitcoin is trading at around 39,000 dollars as it fell below the 40,000-dollar mark. It fell to around 38,000 dollars at one point on the day. The price of Bitcoin temporarily soared to 49,048 dollars on the 10th when the U.S. Securities and Exchange Commission (SEC) approved the spot ETF for Bitcoin, but has now fallen by about 20 percent.
What led the decline was the intensive selling of Grayscale Bitcoin Trust. According to the Wall Street Journal (WSJ), the amount of capital outflows detected in the fund since the 19th has reached 2 billion dollars. Although there are still more inflows of funds throughout the Bitcoin spot ETF, over time, the outflow of Grayscale seems to have exceeded the inflows of funds from the rest of the fund. Eric Balchunas, a senior ETF analyst at Bloomberg, explained, “On the 22nd alone, a total of 875 billion dollars of net outflow occurred.”
