By
Bhushan Akolkar
April 29th, 2024
Nine new spot Bitcoin ETFs have accumulated over 100,000 BTC, valued at $4 billion AUM. BlackRock’s IBIT leads with 40,213 BTC.
In the wake of Bitcoin’s descent below the $39,000 threshold, analysts at Bitfinex have raised concerns about an elevated risk of further price correction, particularly among short-term holders. The recent market movements have triggered a sense of bearish sentiment, prompting analysts to highlight potential critical support levels at $38,000 and $36,000.
The Bitfinex Alpha Report on Tuesday delved into the prevailing market dynamics, emphasizing the susceptibility of short-term holders to react sharply to immediate market fluctuations. The report also outlined the likelihood of a substantial price correction, pointing to crucial support levels that could come into play between $38,000, in proximity to the short-term holder realized price of $38,307, and $36,000.
Analyzing metrics related to unrealized and realized profit and loss for short-term Bitcoin holders, Bitfinex analysts observed that over half of the profits accumulated by this cohort have been erased. The report noted that many holders, particularly those who acquired Bitcoin within the past month, are opting to exit the market at a loss.
Courtesy: CryptoQuant
The heightened market volatility has contributed to total liquidations of leveraged crypto positions surpassing $330 million in the last 24 hours. Long positions bore the brunt of the liquidations, accounting for a loss exceeding $290 million, while short positions contributed around $39 million to the overall liquidation figure, according to data from Coinglass. As the Bitcoin market navigates these challenges, investors closely monitor support levels and the evolving dynamics of short-term holder behavior.
Spot Bitcoin ETFs Gather Over 100,000 BTC
The latest addition to the crypto investment landscape, the nine new spot Bitcoin exchange-traded funds (ETFs), has collectively amassed over 100,000 BTC, equivalent to $4 billion in assets under management (AUM), excluding the converted Grayscale Bitcoin Trust (GBTC) fund.
Leading the pack is BlackRock’s spot Bitcoin ETF (IBIT), which holds 40,213 BTC, securing the top spot in terms of Bitcoin holdings, as reported by data from K33 Research. Fidelity’s FBTC spot Bitcoin ETF claims the second-highest Bitcoin under management among the newly launched funds, boasting 34,152 BTC.
As of Monday, the combined holdings of the new spot Bitcoin ETFs reached 109,221 BTC, indicating a substantial influx of assets into these investment products. It’s worth noting that this total excludes the GBTC, which has experienced a decline in its assets under management by $2.8 billion during the same period.
CoinGlass data reveals that assets held by the converted GBTC fund have decreased by over 10%, dropping from approximately 619,220 BTC to 552,680 BTC. This 66,540 BTC reduction constitutes around 60% of the Bitcoin now held collectively by the new spot Bitcoin ETFs.
On Monday, the new spot Bitcoin ETFs demonstrated robust investor interest, registering $564.5 million in inflows, according to Bloomberg ETF analyst James Seyffart. BlackRock’s IBIT led the way with its third-largest inflow day, attracting $272 million. Fidelity’s FBTC secured the second position with $159 million, while the remaining ETFs with inflows recorded figures under $100 million. The growing AUM and consistent inflows underscore the increasing acceptance and demand for spot Bitcoin ETFs among investors.