The recent approval of the spot Bitcoin ETF has sent ripples across the market, swiftly making its mark on exchanges. This landmark event not only grabbed the attention of global investors but also marked a crucial step toward mainstream adoption.
Analyst Ali Martinez shared insights, revealing the staggering holdings of spot Bitcoin ETFs in the United States— a massive 638,900 BTC, valued at approximately $27 billion.
Grayscale takes center stage, holding a remarkable 566,973.4051 BTC as of January 19, solidifying its position as the largest holder and elevating Bitcoin ETFs above Silver, securing the spot as the second-largest commodity ETF.
BlackRock, operating under iBIT, stands as the second-largest holder with 28,622 BTC in its Bitcoin treasury. Fidelity Investments (FBTC) closely follows in third place, safeguarding 20,466 BTC within its custody.
While giants dominate, let’s acknowledge the contenders. Bitwise (BITB) holds 8,294 units, Ark/21Shares (ARKB) embraces a total of 7,565 BTC, and Invesco/Galaxy (BTCO) secures its position with 1,871 BTC.
Despite the green light from the SEC and substantial Bitcoin holdings, the anticipated surge in Bitcoin prices has proven elusive. On the day of spot Bitcoin ETF approval, amid the ETF frenzy, Bitcoin surged to $48k, only to face a quick downturn.
As of now, Bitcoin is trading at $40k, falling below expectations, leaving traders dissatisfied. The core issue lies in selling pressure overshadowing buying activities, contributing to this temporary setback.
Read More: Why is Bitcoin Price Dropping Despite ETF Approval?
Adding to the uncertainty, BitMEX founder Arthur Hayes, a respected industry voice, predicts a further decline in Bitcoin’s value, projecting a drop below $40,000. Hayes has backed his prediction by acquiring 29Mar $35k strike puts, expecting Bitcoin’s descent to persist until the January 31 US Treasury quarterly refunding announcement. The purchase, amounting to 5 BTC, underscores a cautious outlook.
These indicators, coupled with market dynamics, suggest a potential downturn for Bitcoin in the days to come. Despite the excitement surrounding spot Bitcoin ETF approval, the road ahead remains unpredictable, keeping traders and enthusiasts on the edge of their seats.
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