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  • Qadir AK
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    Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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New ETFs Fuel Trading, But Selling Pressure Looms! What Next for Bitcoin?

Story Highlights
  • Bitcoin held steady around $42,000 despite ETF launch, but increased trading on Coinbase.

  • A price difference between Coinbase and other exchanges suggests potential selling pressure, urging caution.

  • Reported ETF inflows of $2 billion are questioned, with conflicting reports suggesting lower figures.

The approval of spot Bitcoin Exchange Traded Funds (ETFs) brought anticipation of price surges or drops, but Bitcoin has comfortably held around $42,000, defying expectations. However, beneath this apparent stability lies an interesting story.

Elevated Activity, Steady Prices

When you look at how spot BTC ETFs affect the market, you can see an interesting interaction. Since the ETFs went live, there has been a noticeable rise in the amount of money going into Coinbase, a big spot market. According to an anonymous analyst, most spot Bitcoin ETFs that have been filed with the US SEC use Coinbase as a custodian. This makes it a key tool for asset managers to buy and sell Bitcoin. But, even though there are more trades on Coinbase, Bitcoinโ€™s price has been moving in a straight line.

But the concerning indicator is the Coinbase Premium Gap, which reflects the price difference on Coinbase compared to other spot venues. Plus, the gap is signaling strong selling pressure and has historically hinted at potential significant downturns for Bitcoin. Analysts are advising patience and a watchful stance, stressing the need to monitor the Coinbase Premium Gap for potential signs of a dip in support levels.

Discrepancies in Inflows?

Looking at the other side, the Reuters reports indicate that spot Bitcoin ETFs fetched nearly $2 billion in their first days of trading. Whereas BlackRock and Fidelity have led these capital inflows, questions have been raised about the accuracy of these numbers, with conflicting reports on the actual inflows. Despite the positive sentiment around spot Bitcoin ETFs, people are concerned about the ballpark figure of capital inflows, with conflicting reports suggesting figures of around $800 million in the first three days after the ETFsโ€™ launch.

The discrepancy raises questions about the accuracy of reported numbers, prompting a more nuanced understanding of the evolving market dynamics post-ETF approval.

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