Bit more, mostly from the Financial Times, about how deeply meh the reaction to the BTC ETFs has been-
--------
Bitcoin has lost 16 per cent of its value over the past two weeks, as some investors use the much-hyped launch of bitcoin exchange traded funds earlier this month to take profits and exit their holdings of the volatile cryptocurrency.
The price of bitcoin sank as much as 3 per cent on Tuesday, falling below $39,000 for the first time since early December.
The recent losses have unwound part of a huge rally late last year, which came amid fevered speculation that the launch of mainstream stock market funds tracking the world’s leading crypto token would draw in new investors to bitcoin.
But the flows into the ETFs — many launched by big Wall Street players such as BlackRock — have underwhelmed and investors who bought them have been left with hefty losses.
The 10 new funds launched on January 11, after they were approved by the US Securities and Exchange Commission, had collectively pulled in $4.7bn by the end of Tuesday, according to crypto investment group CoinShares. Bitcoin traded at $46,100 on the day the ETFs were launched, but has fallen steadily since.
At the same time, $3.4bn has left Grayscale’s fund, the world’s largest bitcoin investment vehicle, since it converted to an ETF alongside the new launches.
-----
That’s $1.4 billion of net new demand. Coinmarketcap tells me that the total market capitalization of Bitcoin is about $775 billion, and it trades about $30 billion a day, so adding $1.4 billion just isn’t that much. It turns out that crypto enthusiasts anticipated much higher mainstream demand for Bitcoin ETFs than has so far manifested.
The bit below and above the ---- is all from the FT, the one paragraph after it is from Matt Levines reporting on how disinterested "new" people appear to be in BTC-- with the vast majority of the $ moved into them being money moved OUT of the much-harder-to-liquidate existing Grayscale BTC fund.