Matt Hougan, chief investment officer of asset management company Bitwise, said on Twitter that the recent continuous decline in Bitcoin ETF prices comes from the market’s past expectations for the passage of spot ETFs, and now the market is settling the position of this bet.
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ToggleBitcoin ETF prices drop
Market taking profits
Matt Hougan believes that the recent selling pressure is profit-taking in anticipation of the passage of the Bitcoin Spot ETF. At that time, the market profited from the news of ETF approval by buying a large amount of spot Bitcoin and Bitcoin derivatives. There will be more net inflows into ETFs than there is actual demand, and now the market is closing this investment, thus causing this sell-off and waiting for the market to digest it.
However, Matt Hougan also said that just as the market overestimates the short-term impact of ETFs, it also underestimates its long-term impact.
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GBTC continues to sell off
In addition, Matt Hougan pointed out that Grayscale’s Bitcoin ETF GBTC continues to have a net outflow of assets, but the overall Bitcoin spot ETF market is still a net inflow. The number of BTC purchased by new ETFs is more than the number of GBTC sold.
ETF analyst James Seyffart believes that GBTC's outflow rate will eventually fall between 20% and 35%.
(Mt.GOX + GBTC A total of 700,000 Bitcoins are waiting to escape? BTC prices continue to decline)
