Spot Bitcoin Stir Market Dynamics as Traditional Finance Institutions Enter

Investors pull over half a billion dollars from Grayscale Bitcoin Trust, while other spot Bitcoin ETFs see net inflows.

Spot bitcoin ETFs may increase short trades by traditional market participants, potentially putting downward pressure on the price of bitcoin.
Traditional finance institutions such as BlackRock, Goldman Sachs, and JPMorgan are entering the bitcoin market following the approval of bitcoin ETFs, potentially affecting the power dynamics within Bitcoin.
Analysts estimate that the demand for bitcoin ETFs could run as high as $100 billion, representing about an eighth of the total market cap.
Investors have pulled over a half of a billion dollars from the Grayscale Bitcoin Trust during its first days of trading as an ETF, with some investors fleeing to cheaper spot Bitcoin ETFs.
New spot Bitcoin ETFs have all seen net inflows, with BlackRock’s IBIT pulling in nearly $500 million in its first two days of trading, and Fidelity’s FBTC getting roughly $421 million.