Bitcoin Drops Below $41,000 as SEC Delays Fidelity Ether Spot ETF Application

Bitcoin Drops Below $41,000 as SEC Delays Fidelity Ether Spot ETF Application

Bitcoin Drops Below $41,000 as SEC Delays Fidelity Ether Spot ETF Application

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Bitcoin Falls Below $41,000
SEC Delays Ether Spot ETF Application
After the approval of the Bitcoin spot ETF, the market faced significant downward pressure last night due to “sell the news” and “GBC dumping,” even dropping below $41,000.

Regarding the current trend, Morgan Stanley analyst Nikolaos Panigirtzoglou stated that if investors in Grayscale’s Bitcoin spot ETF (transitioned from GBTC) continue to profit-take, the Bitcoin price may face additional downward pressure in the coming weeks.
Due to the significantly higher management fees charged by GBTC compared to other competing ETFs, this fund, which has successfully transitioned and now has an asset management value exceeding $20 billion, has continuously faced capital outflows. According to Arkham’s data, Grayscale’s wallet address transferred another 9,840 BTC (worth approximately $418 million) to Coinbase Prime last night. Since the successful transition of GBTC, Grayscale has transferred a total of 41,478 BTC to Coinbase Prime, with a total value of approximately $1.78 billion.

However, it should be emphasized that the net inflow of all ETFs (including GBTC) since the opening is actually $1.29 billion, indicating that the traditional financial market is not uninterested in Bitcoin investments. It is only because the outflow of funds from GBTC has a greater impact on the Bitcoin secondary market that the current price of the currency has fallen.

On the other hand, there has been no substantial progress in the expected Ether spot ETF by the community. According to documents submitted on Thursday, the U.S. Securities and Exchange Commission (SEC) has postponed the application for Fidelity’s Ether spot ETF. The SEC wrote in the document:
The subsequent key date will be in May when the SEC must make a decision on the approval of the three Ether ETFs.

The potential approval of the Ether spot ETF has driven the recent rebound in the ETH/BTC exchange rate. However, when interviewed, CoinShares researcher Luke Nolan pointed out that the probability of the Ether spot ETF being approved in 2024 is about 70%. However, Luke Nolan added that he believes the market may have reacted a bit too early, and the earliest approval may not occur until the fourth quarter of 2024, with a low probability of approval before then.
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