•The price of Bitcoin (Bitcoin-BTC) settled to close its trading this week near the level of $41,600, with a slight decline of 0.4% compared to its close last week at approximately $41,750, as its volatility decreased following the approval of the US Securities and Exchange Commission (SEC) on Bitcoin spot trading funds in... Stock Exchange (Bitcoin Spot ETFs), which put an end to speculation about the committee’s decision, according to Matteo Greco - an analyst and researcher at Fineqia International - who said in a memo obtained by our website Cryptonews.com that the offering of Bitcoin Spot ETFs succeeded in attracting a lot of investments from Traditional financial markets to the digital assets market, where these 11 funds together were able to attract investments worth approximately $1.15 billion. Greco added:

•However, inward investments for these 11 ETFs combined were reduced in part due to outflows from Grayscale Bitcoin Trust (GBTC).

•Exit of investments worth more than $2.8 billion from the GBTC Fund

•The analysis indicated that the GBTC investment fund, whose shares have been traded since 2015, was recently converted into an exchange-traded fund (ETF).

•After this transfer, the investment product witnessed the exit of large investments worth approximately $2.81 billion, which reduced the net investments coming into the 11 Bitcoin spot trading funds on the exchange - from $3.96 billion to $1.15 billion. Before the conversion, GBTC contained approximately 620,000 BTC assets, and this number has now decreased to only 552,000 BTC.

•Greco explained that the exit of investments from the GBTC product may be due to two factors: First, customers who previously owned GBTC shares could not redeem their value, but could only sell them on the secondary market due to the nature of the product, forcing many to hold their positions for a long period with no exit option other than selling at a significant discount.

•Second, as a result of Grayscale's high management fees - 1.5% - compared to most of its current competitors' fees of around 0.2-0.3%, some investors have withdrawn their investments from GBTC either to take advantage of the profits or to reinvest in less expensive ETFs.

•Bitcoin spot ETFs (BTC Spot ETFs) witnessed great activity and huge trading volumes. In the first six trading days after their launch, the cumulative trading volume of the 11 funds together reached approximately $16.6 billion, with an average of approximately $2.77 billion per day.

•As expected, the GBTC fund recorded the highest trading volume because it contains a large amount of reserved Bitcoin, after the nature of its activity changed following its conversion to an exchange-traded fund (ETF).

•Ethereum Spot ETFs (ETH Spot ETFs) are on the horizon

•After the success of launching BTC Spot ETFs, the attention of both analysts and traders in the sector is now turning towards the possibility of launching ETFs related to trading other digital assets, and analysts expect - by 70% - that the establishment of ETFs for Ethereum spot trading (ETH Spot ETFs) will be approved this year.

•It is noteworthy that the state of optimism regarding these expectations is on the rise thanks to the price movements of the Ethereum currency (Ethereum-ETH), which followed the approval of applications for BTC Spot ETFs, as some investments were transferred from Bitcoin to Ethereum, which led to an increase in the price of ETH by 17%. Compared to Bitcoin, by 11% against the dollar within a week of approval, this indicates the sector traders’ conviction that requests for ETH Spot ETFs will be approved after the approval of its predecessor, BTC Spot ETFs, which prompted them to adjust their investment positions in accordance with these expectations.

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