Investing.com - The cryptocurrency sector is trading in the red on Tuesday. Bitcoin loses $39,000 at mid-session and drags down other major assets.
So far this month, Bitcoin has lost more than 7% of its value, after four consecutive months of strong gains.
"The approval of the bitcoin spot ETFs proves to be a 'sell on the news' event. Since the ETFs' launch on 11 January, the price of bitcoin is down 16%, with some long-term crypto holders taking the opportunity to exercise profit-taking," says Simon Peters, expert cryptoasset analyst at eToro.
"Almost two weeks after the approval of the bitcoin spot ETFs, we are starting to see some favourites emerge. As predicted by most of the crypto community, IBIT (Blackrock's iShares Bitcoin Trust (NYSE:BLK)) and Fidelity's FBTC are grabbing much of the market share, currently accounting for 19% and 20% of the total bitcoin spot ETF market share, respectively," Peters notes.
According to Peters, "Grayscale's GBTC still holds the most bitcoins of all the cash ETFs, with 53% of the market share, although all of this was purchased in its days as a mutual fund, before it was converted into ETFs. Since becoming an ETF, GBTC has seen net outflows totalling 66,500 BTC (about $2.6 billion at current market prices), probably due to high fees, which have led investors to opt for lower-fee alternatives."
A change in trend?
Despite these declines, "as inflows into bitcoin spot ETFs continue and anticipation grows around the upcoming halving of the block reward(halving), we expect to see the bitcoin price find support and potentially initiate another move higher," Peters notes.
Translated from Spanish using DeepL.
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