Bitcoin ETF’s Opening Day Raises Questions as Grayscale Dominates Trading Volume
The post Bitcoin ETF’s Opening Day Raises Questions as Grayscale Dominates Trading Volume appeared first on Coinpedia Fintech News
Renowned crypto trader Ran Neuner recently took to Twitter to express his concerns about the inaugural day of trading for the much-anticipated Bitcoin ETF. Contrary to initial reports of a substantial $4.5 billion in trading volume, Neuner delved deeper into the data, revealing what he believes to be a less optimistic reality.
Neuner’s Analysis Unveils Disappointing Figures
Neuner’s tweet highlighted a detailed analysis of the Bitcoin ETF’s first day, revealing that while $4.6 billion was traded, a significant portion of that—$2.3 billion, or 50%—was attributed to the Grayscale Bitcoin Trust (GBTC).
However, Neuner pointed out that these GBTC numbers primarily represented sales and outflows, given the higher fees associated with GBTC and the locking up of older Bitcoin holdings.
According to Neuner’s scrutiny, the substantial GBTC numbers were not indicative of new inflows into the Bitcoin ETF. Instead, the majority of the activity appeared to be sales and outflows, leading him to suggest that the real impact in terms of fresh investments might be close to zero.
Steven Budgen’s Insight Adds Depth
In response to Neuner’s tweet, Steven Budgen, a prominent crypto investor, offered insights into potential reasons behind the lackluster debut of the Bitcoin ETF. Budgen pointed out three key factors: the departure of arbitrages from the trade, the opportunity for liquidity, and the high fees associated with GBTC. He suggested that those who sold GBTC might opt for cash and open new positions in alternative ETFs.
Neuner and Budgen’s observations underscore potential challenges faced by the Bitcoin ETF on its first day. The emphasis on GBTC outflows, combined with concerns about fees and market dynamics, paints a more nuanced picture of the ETF’s initial trading session.
As the crypto community dissects the data and delves into the nuances of the Bitcoin ETF’s debut, industry observers are keenly awaiting further developments.
Bitcoin ETF’s Opening Day Raises Questions as Grayscale Dominates Trading Volume
The post Bitcoin ETF’s Opening Day Raises Questions as Grayscale Dominates Trading Volume appeared first on Coinpedia Fintech News
Renowned crypto trader Ran Neuner recently took to Twitter to express his concerns about the inaugural day of trading for the much-anticipated Bitcoin ETF. Contrary to initial reports of a substantial $4.5 billion in trading volume, Neuner delved deeper into the data, revealing what he believes to be a less optimistic reality.
Neuner’s Analysis Unveils Disappointing Figures
Neuner’s tweet highlighted a detailed analysis of the Bitcoin ETF’s first day, revealing that while $4.6 billion was traded, a significant portion of that—$2.3 billion, or 50%—was attributed to the Grayscale Bitcoin Trust (GBTC).
However, Neuner pointed out that these GBTC numbers primarily represented sales and outflows, given the higher fees associated with GBTC and the locking up of older Bitcoin holdings.
According to Neuner’s scrutiny, the substantial GBTC numbers were not indicative of new inflows into the Bitcoin ETF. Instead, the majority of the activity appeared to be sales and outflows, leading him to suggest that the real impact in terms of fresh investments might be close to zero.
Steven Budgen’s Insight Adds Depth
In response to Neuner’s tweet, Steven Budgen, a prominent crypto investor, offered insights into potential reasons behind the lackluster debut of the Bitcoin ETF. Budgen pointed out three key factors: the departure of arbitrages from the trade, the opportunity for liquidity, and the high fees associated with GBTC. He suggested that those who sold GBTC might opt for cash and open new positions in alternative ETFs.
Neuner and Budgen’s observations underscore potential challenges faced by the Bitcoin ETF on its first day. The emphasis on GBTC outflows, combined with concerns about fees and market dynamics, paints a more nuanced picture of the ETF’s initial trading session.
As the crypto community dissects the data and delves into the nuances of the Bitcoin ETF’s debut, industry observers are keenly awaiting further developments.