Crypto Prices Stabilize as SEC Approval of ETFs Ends Speculation and Reduces Volatility: Fineqia
Bitcoin’s price has stabilized, closing the week at around $41,600, experiencing a marginal 0.4% decline compared to the previous week’s closing value of approximately $41,750.
The reduced volatility can be attributed to the recent approval of ETFs by the SEC, putting an end to speculation surrounding this development, according to Matteo Greco, research analyst at Fineqia International.
The introduction of Bitcoin (BTC) Spot ETFs has attracted significant inflows from traditional finance into the digital assets market, Greco said in a note shared with Cryptonews.com.
He said that since their launch, the 11 Spot ETFs have collectively attracted approximately $1.15 billion in cumulative inflows.
“Leading the pack are the Blackrock Spot ETF, boasting about $1.40 billion in assets under management (AUM), closely followed by the Fidelity Spot ETF with approximately $1.26 billion in AUM.”
However, the total inflow of the 11 BTC Spot ETFs was partially offset by the outflows from the Grayscale Bitcoin Trust (GBTC).
The analysis revealed that GBTC, which has been trading as a trust since 2015, recently underwent conversion into an ETF.
Following the conversion, the product experienced substantial outflows of about $2.81 billion, reducing the net inflow of the 11 BTC Spot ETFs from $3.96 billion to $1.15 billion.
Before the conversion, GBTC held approximately 620,000 BTC, which has now decreased to around 552,000 BTC.
The outflows from GBTC can primarily be attributed to two factors, Greco said.
Firstly, customers holding GBTC shares were previously restricted from redeeming them and could only sell them on the secondary market due to the product’s structure.
This compelled many customers to hold their positions for an extended period
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