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(Bloomberg) – The first day of trading for exchange-traded funds (ETFs) that own Bitcoin was a chaotic one, with Bitcoin continuing to fall from a two-year high as traders analyzed the results.
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“After the first day of ETF trading, it feels like the crypto market is already starting to look to the next story,” said Chris Newhouse, DeFi analyst at Cumberland Institute.
The original cryptocurrency fell by 10% to $41,469. On Thursday, Bitcoin briefly topped $49,000 for the first time since December 2021 after about a dozen ETFs began trading. Most other cryptocurrencies fell, with Cardano Solana’s SOL and Avalanche falling.
All Bitcoin ETF stocks fell on Friday.
According to Anthony Scaramucci, founder of SkyBridge Capital, Bitcoin’s decline was partly due to the sale of Grayscale Bitcoin Trust stock.
“There seems to be a lot of grayscale selling,” Scaramucci said in an interview on Bloomberg TV on Friday.
The hedge fund manager said his trading desk noticed that stockholders were selling at a loss and moving to lower-fee alternatives.
Zach Pandle, managing director or head of research at Grayscale, said selling one Bitcoin product and buying another should not affect the price of Bitcoin. The potential approval of a Spot Bitcoin ETF has been talked about since Grayscale’s court victory last summer. With Bitcoin’s valuation soaring, it’s natural to see some profit-taking in the asset, he said.
Scaramucci said the bankruptcy estate of failed cryptocurrency exchange FTX has also been “unloading” assets amid increased market activity surrounding the ETF announcement, resulting in a significant amount of Bitcoin selling. He said there was.
Complete flow data is not currently available, but at least $720 million has flowed into the 10 Bitcoin ETFs that have begun trading, Bloomberg data shows. The Bitwise Bitcoin ETF (ticker BITB) led the way with approximately $240 million in inflows, followed by the Fidelity Wise Origin Bitcoin Fund (FBTC) and iShares, according to data available Friday morning.・Bitcoin Trust (IBIT) followed.
The long-awaited debut of the 10-stock Spot Bitcoin ETF saw about $4.6 billion worth of stocks traded on Thursday. Comparable to this is the $2.3 billion in trading volume of the Grayscale Bitcoin Trust (GBTC), which has existed in a trust structure since 2013 and had the highest first-day sales for an ETF in history.
Stocks of so-called virtual currency companies also widened their losses. Bitcoin agency MicroStrategy fell for the sixth day in a row, and miners Marathon Digital and Riot Platforms both fell more than 10%. Coinbase Global, the largest U.S. cryptocurrency exchange, fell 7.4%.
–With assistance from Katie Greifeld and Emily Graffeo.
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