Analyst Talks About ‘Worst Day So Far’

Photo of author
Written By Maya Cantina

MBL MBL MBL MBL MBL MBL MBL MBL MBL MBL MBL MBL MBL MBL MBL MBL MBL MBL MBL MBL MBL MBL MBL MBL MBL MBL MBL MBL MBL MBL MBL MBL MBL MBL MBL MBL MBL MBL MBL MBL MBL MBL MBL MBL MBL MBL MBL MLB MLB MBL MBL MBL MBL MBL MBL MBL MBL MBL MBL MBL MBL MBL MBL MBL

Fill

While Bitcoin (BTC) prices plummeted below a two-month low, the spot Bitcoin ETF segment was hit by panic. Top analysts are not convinced that this panic-selling is rational.

“Worst day so far for BTC ETFs”: More than $500 million wiped out of spot Bitcoin ETFs

Qiao Wang, an experienced cryptocurrency investor and co-founder of Messari, called the May 1 session “the worst day so far” for exchange-traded funds based on spot Bitcoin (BTC). During this dramatic session, net fund volume in BTC ETFs lost $500 million.

Fidelity Investments’ Fidelity Wise Origin Bitcoin Fund (FBTC) accounted for the bulk of this decline at $191 million, while Grayscale and ARK products combined accounted for more than 50% of the half-billion loss.

Analyzing the movements made by Bitcoin ETF holders, Qiao Wang agrees with his colleague Jim Bianco. Bianco points out the large percentage of “paper hands” among first-generation Bitcoin spot ETF holders:

Jim Bianco is right that ETF holders are paper holders, FOMOing on the ups and scoffing on the downs.

The Bitcoin ETF segment also witnessed three painful trading days on April 24, 25 and 30. The May 1 session, on its sad note, was the sixth “red” day for Bitcoin ETFs in a row.

As covered by U.Today previously, a spot Bitcoin ETF was launched in Hong Kong. The first day of trading ended with a mediocre AUM of $140 million and trading volume equivalent to $12.1 million.

Reliable institutions are yet to emerge, analysts say

However, Wang is quite optimistic about the next generation of Bitcoin Spot ETF buyers. This scene can witness more and more diamond hand institutions arriving.

Heavyweight asset managers just “need time to get comfortable,” the expert concluded.

Following Bitcoin (BTC) price drop below $57,000, nearly $600 million in liquidated long positions have been registered over the past two days, CoinGlass data show.



Source link

Leave a Comment

MlL MlL MlL MlL MlL MlL MlL MlL MlL MlL MlL MlL MlL MlL MlL MlL MlL MlL MlL MlL MlL MlL MlL MlL MlL MlL MlL MlL MlL MlL