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Bitcoin falls below $41,000
SEC delays Ether spot ETF application
After the approval of the Bitcoin spot ETF, significant downward pressure was faced by the market due to “Sell the news” and “GBC dumping”, even falling below $41,000 last night.
Regarding the current trend, analysts led by Nikolaos Panigirtzoglou from JPMorgan stated that if investors in Grayscale’s Bitcoin spot ETF (transitioned from GBTC) continue to take profits, the price of Bitcoin may face additional downward pressure in the coming weeks.
Due to the significantly higher management fees charged by GBTC compared to other ETF competitors, this fund, with an asset management value exceeding $20 billion, has been struggling with continuous outflows of funds after a successful transformation. According to Arkham’s data, Grayscale’s wallet addresses transferred 9,840 BTC (worth about $418 million) to Coinbase Prime last night. Since the successful transformation of GBTC, Grayscale has transferred a total of 41,478 BTC to Coinbase Prime, with a total value of approximately $1.78 billion.
It should be emphasized, however, that the total inflow of funds from all ETFs (including GBTC) since opening is actually a net inflow of $1.29 billion, indicating that the traditional financial market is not entirely uninterested in Bitcoin investments. It is only due to the larger impact of the outflow of funds from GBTC on the Bitcoin secondary market that the current price of the currency is falling.
On the other hand, there has been no substantial progress in the anticipated Ether spot ETF. According to documents submitted on Thursday, the U.S. Securities and Exchange Commission (SEC) has advanced the deadline for Fidelity’s Ether spot ETF application. The SEC wrote in the document:
The key dates to follow will be in May, when the SEC must make a decision on the approval of three Ether ETFs.
The potential approval of the Ether ETF has driven a recent rebound in the ETH/BTC exchange rate, but Luke Nolan, a researcher at CoinShares, stated in an interview that the probability of approval for the Ether spot ETF in 2024 is approximately 70%. However, Luke Nolan added that he believes the market may have reacted a bit too early, and approval may not happen until the fourth quarter of 2024 at the earliest, with a low probability of approval before then.
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