The next Bitcoin shock could be where Wall Street finally loses faith and starts selling
Despite significant price drops, US spot Bitcoin ETFs showed unexpected resilience, suggesting a new, less panic-prone class of holders.Summary
Bitcoin recently experienced a significant price drop, falling over 40% from its peak, yet the expected mass exodus from spot Bitcoin ETFs did not materialize, indicating a fundamental shift in holder behavior. The launch of these ETFs in January 2024 brought in a new class of institutional investors who appear less eager to sell during sharp drawdowns compared to previous market cycles. While some funds like Grayscale's GBTC saw outflows, overall net inflows remained substantial, with BlackRock's IBIT leading. This resilience contrasts sharply with historical precedents, such as the 2013 gold ETF outflows during a price drop. The article suggests two interpretations: either ETFs attracted stronger, long-term holders, or the selling pressure has merely slowed down. Regardless, the aggregate behavior during this stress test suggests Wall Street's participation has changed how Bitcoin reacts to severe price volatility.
(Source：CryptoSlate)