Examining the Influence of Bitcoin ETFs on the Market
Bitcoin ETFs represent a substantial part of the market with over 3% of BTC's total circulating supply, despite initial price setbacks post-approval.
February 2, 2024
Spotlight on Bitcoin ETFs
The introduction of Bitcoin Exchange-Traded Funds (ETFs) has marked a significant milestone in the cryptocurrency landscape. Following their launch, these ETFs offer a fresh way for investors to participate in Bitcoin trading without owning the digital currency directly.
Analysis of Holdings
Recent data reveals that Bitcoin ETFs now hold an impressive 591,738 BTC, approximately 3% of the total circulating supply, although correcting for certain outflows adjusts this number to roughly 3.3%. This translates to $25.5 billion, showcasing the substantial impact of ETFs on the market.
Market Impact and Recovery
Despite the initial excitement surrounding Bitcoin spot ETFs, their approval triggered a downturn for Bitcoin's price. However, there seems to be a hint of recovery, with Bitcoin's value currently hovering around $43,000, indicating potential for regaining previous highs.
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