The spot Bitcoin ETF market is experiencing panic after the price of Bitcoin (BTC) fell below two-month lows. Prominent analysts question the rationality of this panic selling.
“Worst day by far for BTC ETFs”: Over $500 million erased from spot Bitcoin ETFs
https://x.com/QwQiao/status/1785980794525073756
The May 1 session for exchange-traded funds based on spot Bitcoin (BTC) is considered the “worst day by far” by Qiao Wang, a seasoned cryptocurrency investor and cofounder of Messari. The net amount of money in Bitcoin ETFs dropped by $500 million during this intense session.
The majority of this flush’s $191 million loss may be attributed to Fidelity Investments’ Fidelity Wise Origin Bitcoin Fund (FBTC), while the combined losses from ARK and Grayscale’s products account for more than half of the half-billion dollar loss.
Examining the actions taken by spot Bitcoin ETF holders, Qiao Wang and colleague Jim Bianco came to the same conclusion. Bianco pointed out that a significant portion of the initial cohort of Bitcoin spot ETF holders were “paper hands”:
ETF holders were paper hands, as Jim Bianco correctly observed, FOMOing on the way up and jeering on the way down.
On April 24, 25, and 30, there were three traumatic trading days for the Bitcoin ETF market. With its depressing record, the May 1 session marks the sixth consecutive “red” day for Bitcoin ETFs.
As previously reported by U.Today, Hong Kong saw the introduction of spot Bitcoin ETFs. With a meagre AUM of $140 million and an equal trading volume of $12.1 million, the first day of trading came to an end.
Diamond-hand institutions are yet to come, analyst says
Mr. Wang is somewhat hopeful about the next generations of buyers of Bitcoin Spot ETFs, though. There may be an increasing number of diamond hand institutions entering the scene.
Simply put, heavyweight asset managers “need time to get comfortable,” the expert said.
CoinGlass data indicates that within the previous two days, about $600 million in liquidated long positions were recorded following the decline in the price of Bitcoin (BTC) below $57,000.
