HomeCryptocurrenciesBitcoin Falls Below $42,000 as ETF Optimism Fades

Bitcoin Falls Below $42,000 as ETF Optimism Fades

Bitcoin slumped by around 10% to $41,469 as investor optimism surrounding the release of exchange-traded funds holding the cryptocurrency faded into the background. This comes after Bitcoin raced to $49,000 for the first time since December 2021 once the multiple ETFs holding the cryptocurrency began trading.

“With the first day of ETF trading behind us, it already feels like the crypto markets have moved on to looking toward the next narrative,” Chris Newhouse, DeFi analyst at Cumberland Labs observed, suggesting that this was simply a fad. SkyBridge Capital founder Anthony Scaramucci argued, however, that the cryptocurrency’s slump had more to do with the large-scale sales of Grayscale Bitcoin Trust shares. According to Scaramucci, shareholders opted to move on to alternative ETFs with lower fees.

Data from Bloomberg showed that around $720 million was invested in the 10 Bitcoin ETFs on the day that they began trading. Almost $240 million flowed through the Bitwise Bitcoin ETF, followed by the Fidelity Wise Origin Bitcoin Fund and the iShares Bitcoin Trust.

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