How has the market changed after the SEC approved a Bitcoin spot ETF?

Recently, the U.S. Securities and Exchange Commission (SEC) decided to approve a Bitcoin spot ETF, which has attracted widespread market attention. However, after the SEC’s decision was announced, Bitcoin prices fell sharply. Since hitting a three-year high of $49,000 on January 11, Bitcoin’s value has fallen by more than 20%.

The reason behind this phenomenon has to do with the expectations of market participants. Many people bought Bitcoin in anticipation of the SEC approving a Bitcoin spot ETF. However, when the SEC did approve the ETF, these investors chose to sell Bitcoin because they had achieved their purpose.

In addition, analysts at Deutsche Bank pointed out that although the new spot Bitcoin ETF attracted nearly $4 billion in inflows, most of the funds were actually outflows from Grayscale. Grayscale, now an ETF, has previously dominated the regulated Bitcoin investment market. While Grayscale saw $2.8 billion in outflows, products run by BlackRock and Fidelity also attracted some inflows.

In addition to the impact of investor expectations and capital flows, the decline in Bitcoin prices is also related to another factor: the sale of assets by bankrupt cryptocurrency exchange FTX. This incident caused a considerable impact on the market and intensified the downward trend of Bitcoin prices. #MULTI #syn #xem #dusk #sui $OAX $BLUR $AMB