After the bulk approval of a spot Bitcoin Exchange Traded Fund (ETF) in the United States by the Securities and Exchange Commission (SEC), a significant capital inflow has been observed. Recently, Eric Balchunas, an ETF expert from Bloomberg, made a post on X (previously Twitter) regarding the fastest ETFs to reach $1 billion in assets.
ETF assets milestone – Fastest to $1 billion
According to the post by Eric on January 19, 2024, out of 5,000 ETFs, the fastest ETF to reach $1 billion in assets is BITO (ProShares Bitcoin Strategy ETF) in just 2 days, GLD (SPDR Gold Trust) in three days, IBIT (iShares Bitcoin Trust) in four days, and FBTC (Fidelity Advantage Bitcoin ETF) in 5 days. Additionally, the former CEO of BitMEX and JP Morgan earlier predicted that a Bitcoin ETF could attract significant flow from crypto-related products, which is proving true. As of now, following the ETF approval, over $3 billion of capital has flowed into the ETF.
Besides these significant fund flows into the Bitcoin ETF, it is also observed that after the approval of the Bitcoin ETF, the overall cryptocurrency market was affected, and since then, Bitcoin has experienced over an 11% downside momentum.
However, the cryptocurrency community was expecting that after the approval of a spot Bitcoin ETF, the overall cryptocurrency market would surge significantly. Unfortunately, the ETF approval expectation did not materialize.
Bitcoin price and its technical analysis
However, Bitcoin is currently trading near the $41,000 level, and in the last 24 hours, it has experienced over a 3.5% downside momentum. If we look at Bitcoin over a longer period, in the last 7 days, it has experienced over a 10% downside momentum, and in the last 30 days, it has only experienced a 3% downside momentum. Before the Bitcoin ETF approval, we experienced continuous bullish momentum, but currently, it is struggling to gain momentum.
According to experts’ technical analysis, as of now, Bitcoin is at a strong support level of $41,000, and this is the only level where Bitcoin surged previously. But this time, as overall sentiment and cryptocurrencies are bearish if Bitcoin sustains this current $41,000 level, we may see a bearish move.
As per price action and technical analysis, if Bitcoin prices on a daily time frame close below the $40,900 level, then in the next 3-4 days, we may see a bearish move towards the $38,000 level.
