Bitcoin ETF

Bitcoin

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<p style="text-align: justify">You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/insights-on-bitcoin-etf-activity-and-market-misconceptions/" data-wpel-link="internal">Insights on Bitcoin ETF Activity and Market Misconceptions</a><br></p>
<p style="text-align: justify"><strong><a href="https://coin-turk.com/bitcoin-btc-fiyat-uyarisi-btc-once-buraya-dusecek" data-wpel-link="internal">Bitcoin</a>‘s</strong> price has risen above $54,900, and the market continues to be active. Amidst these developments, a NYDIG report provides a different perspective. It was noted that although high transaction volumes in new spot <a href="https://en.coin-turk.com/bitcoins-price-movement-will-it-drop-to-20000-or-soar-to-new-heights/" data-wpel-link="internal">Bitcoin</a> ETFs are generally thought to indicate strong investor buying interest, this may not always be the case.</p> 
<h2 id="what-does-the-spot-bitcoin-etf-report-indicate">What Does the Spot Bitcoin ETF Report Indicate?</h2> 
<p style="text-align: justify">Greg Cipolaro, the Global Head of Research at NYDIG, stated in an article published on Friday:</p> 
<blockquote> 
 <p style="text-align: justify">Daily trading volume is not a reliable indicator of daily fund flows, which is a common misconception in the industry.</p> 
</blockquote> 
<p style="text-align: justify">For instance, Cipolaro seems to have a different perspective on the matter. He suggests that it’s not incorrect to consider Grayscale’s Bitcoin Trust (GBTC) among the top ten Bitcoin ETFs as a prime investment.</p> 
<p style="text-align: justify">According to Cipolaro, since the launch of spot ETFs on January 11, GBTC has consistently attracted attention with daily trading volumes exceeding a total of $20 billion.</p> 
<p style="text-align: justify">Despite all this, Grayscale funds have also lost over $7 billion in assets. This is seen as the clearest indicator of the low correlation between the emerging volumes and inflows.</p> 
<h2 id="img-loading-lazy-loading-lazy-decoding-async-class-aligncenter-size-full-wp-image-319865-src-https-coin-turk-com-wp-content-uploads-2024-02-bitcoin-etf-coin-turk-com-jpg-alt-width-843-height-509"><img loading="lazy" loading="lazy" decoding="async" class="aligncenter size-full wp-image-319865" src="https://coin-turk.com/wp-content/uploads/2024/02/bitcoin-etf-coin-turk-com.jpg" alt="" width="843" height="509"></h2> 
<h2 id="current-status-of-bitcoin-etfs">Current Status of Bitcoin ETFs</h2> 
<p style="text-align: justify">On the other hand, BlackRock’s popular ETF, the iShares Bitcoin Trust (IBIT), has only managed to reach about $13 billion, just over half of GBTC’s volume, but its AUM has risen from $0 to approximately $7 billion.</p> 
<p style="text-align: justify">Cipolaro appears to be paying attention to a fund’s turnover rate. In this context, he also considers the division of the dollar-denominated trading volume by the fund’s net asset value. He added the following to his comments:</p> 
<blockquote> 
 <p style="text-align: justify">This rate shows the proportion of assets traded on any given day, giving an idea of investor and trader profiles and potentially what motivates their investment choices.</p> 
</blockquote> 
<p style="text-align: justify">Cipolaro noted that when considering spot Bitcoin ETFs as a whole, he observed a turnover rate of 5.3%, with Valkyrie (BRRR) and Grayscale’s GBTC having the lowest rates at 2.2% and 2.4%, respectively.</p> 
<p style="text-align: justify">At the top of the list is Ark 21 (ARKB) with a turnover rate of 11.3%. Cipolaro also mentioned that WisdomTree (BTCW), the smallest of the spot ETFs with about $30 million AUM, had a turnover rate of 205% over a five-day period.</p> 
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on COINTURK NEWS: </span> <a href="https://en.coin-turk.com/insights-on-bitcoin-etf-activity-and-market-misconceptions/" data-wpel-link="internal">Insights on Bitcoin ETF Activity and Market Misconceptions</a></h5>

Insights on Bitcoin ETF Activity and Market Misconceptions

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