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K33 Research Analyst Vetle Lunde stated that even before approval by U.S. regulatory authorities, a substantial amount of spot Bitcoin products were already being traded globally. He noted that global Exchange-Traded Products (ETPs) currently hold over 864,000 bitcoins. From a certain perspective, the incremental growth of U.S. traded products has been relatively small so far.
Lunde also pointed out that, apart from the withdrawal of GBTC, there has been a significant outflow of funds in Canadian and European ETPs in the past week, attributed to investors realizing profits and/or reallocating funds to cheaper U.S. ETFs.
Additionally, there is the ProShares Bitcoin Strategy ETF (BITO), which recently managed assets exceeding 2 billion USD. Lunde mentioned that although this futures-based ETF does not hold actual bitcoins, it constitutes 36% of the open interest in Bitcoin contracts on the CME exchange. He added that collectively, futures-based Bitcoin ETFs account for 48% of open interest in Bitcoin contracts on the CME.
Lunde believes that as BITO and other futures-based funds experience fund outflows, they will need to liquidate (sell) long positions in the futures market, potentially putting further pressure on the price of Bitcoin.
Bartosz Lipiński, CEO of the trading platform Cube.Exchange, expressed the opinion that the speculation around ETFs has somewhat diminished, and trader attention may shift elsewhere. The current options positioning suggests a support level around $40,000, a significant psychological price point.
Independent market analyst Michael van de Poppe advised investors on the X platform: "Do not be bearish on BTC and hold a negative outlook. Remember to buy on dips and hold." |
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Post time 2-2-2024 20:28:19