Despite the initial optimism that followed the approval of Bitcoin ETFs, the cryptocurrency experienced an unexpected decline, dropping over 7% from $49,000 to an intraday low of $45,644. This unexpected decline contradicts the prevailing optimism in the market following the recent approval of Bitcoin exchange-traded funds (ETFs).
Furthermore, the Bitcoin options data also paints a picture of uncertainty in the market. Options data for January 12 reveals that 36,000 BTC options are on the verge of expiration. The data includes a Put Call Ratio of 0.9, a Maxpain point of $45,000, and a notional value of $1.68 billion.
Despite the expected passage of the Bitcoin Spot ETF this week, the market experienced frequent and sharp volatility fueled by repeated fake news and breaking news. Before the ETF approval, short-term implied volatilities (IVs) reached their peak, but all major term IVs subsequently receded due to lower-than-expected market volatility. While the adoption of the Bitcoin Spot ETF is projected to bring incremental capital to the crypto market in the long term, the short term remains uncertain, with various factors influencing the market. Sharp volatility, similar to this week’s fluctuations, could persist for several days.
In a notable debut, nearly a dozen Bitcoin ETF funds, including offerings from major players such as BlackRock Inc. and Fidelity Investments, experienced a robust start with approximately $4.6 billion in shares exchanged during an energetic inaugural trading day. This significant activity is viewed by industry supporters as a crucial step toward broader mainstream adoption among everyday investors and a potential catalyst for further market gains.
On its inaugural day, Grayscale, a prominent participant in the crypto asset management sector, has taken a prominent position, as its transformed ETF registered an impressive $1.9 billion in trades. Following closely are BlackRock and Fidelity, with trade volumes reaching $942 million and $628 million, respectively. These substantial figures underscore a notable investor interest, especially in the recently introduced funds from BlackRock and Fidelity, indicating a significant injection of capital into these offerings.
While the US Bitcoin ETF now become a reality, everyone is now awaiting the launch of the spot Ethereum ETF that shall come sometime around May 2024.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | negative |
| Relevance Score | 1 |
| People | Eric Balchunas |
| Companies | BlackRock Inc., Bloomberg, Greeks.Live, Fidelity Investments, Grayscale |
| Currencies | Bitcoin, Ethereum |
| Securities | None |
