Bitcoin Downside Risks Remain Despite Early Success of Spot ETFs, Observers Say
Summary
Bitcoin prices fell by up to 15% following the listing of several U.S. spot exchange-traded funds (ETFs), despite their early success. Outflows from Grayscale’s Bitcoin Trust product are contributing to the downward pressure. ETF volume data from BlackRock, Fidelity, and Bitwise crossed the $500 million mark, indicating demand from regulated funds and professional traders. However, on-chain analysis firm CryptoQuant warns of further downside risks, stating that several on-chain metrics suggest the price correction may not be over. Short-term traders and large bitcoin holders are still selling significantly, and unrealized profit margins have not fallen enough for sellers to be exhausted.
