BTC Beats the Whole Crypto Market, and the Ether Price Drop Mirrors the Launch of the Bitcoin ETF
According to the CoinDesk 20 Index, BTC did better during the Friday Asia trading session than the overall cryptocurrency market.
According to one expert, since their introduction in January, the performance of the ether exchange-traded funds has mirrored that of the bitcoin ETFs.
During the Asia trading day, Bitcoin (BTC) gained 4.4% to reach $67,000, outperforming the overall cryptocurrency market, while the CoinDesk 20 Index (CD20) increased 3.3%.
According to CoinGecko data, Solana’s SOL increased by more than 5% to top gains among major tokens. ETH, BNB Chain’s BNB, and Cardano’s ADA each added 3%.
Dogecoin (DOGE) increased by 4%, whereas popcat (POPCAT), a memecoin headquartered in Solana, increased by more than 8% to lead that category’s gains.
For the third day in a row, ether products topped the list of cryptocurrency futures liquidations, with nearly $70 million in longs liquidated as opposed to $55 million on futures that tracked bitcoin.
Bitcoin Withdrawals
Bitcoin exchange-traded funds (ETFs) gained a net $31.16 million, according to data from SoSoValue, increasing the total net flow since their launch in January to just under $17.5 billion.
The ETFs’ combined net assets are $59.14 billion, or roughly 4.6% of the largest cryptocurrency’s total market capitalization.
The second-largest, ether, increased 2.8% to reach $3,200, per CoinDesk Indices data. According to SoSoValue data, the ether ETFs saw a net daily outflow of $152 million.
Since the ETFs began trading this week, their total flow has been negative by $178.68 million. This is mostly because Grayscale Ethereum Trust (ETHE), which changed its investment structure to an ETF, saw withdrawals.
In an email letter, CoinShares analysts stated, “This situation is very similar to the bitcoin ETF product launches at the beginning of the year.”
Over the first few weeks, bitcoin’s price was negatively impacted by withdrawals from the Grayscale Bitcoin Trust (GBTC), the largest bitcoin fund in the world at the time.
GBTC had changed from a closed-end structure to an exchange-traded fund (ETF) that permitted redemptions for the first time in ten years.
Eventually, the downward trend was reversed by inflows into competing funds, which helped BTC reach an all-time high in March.
Mads Eberhardt, a Steno Research cryptocurrency researcher, called the decrease in the Grayscale Ethereum Trust a “prime buying opportunity,” as it is on a similar but quicker route.
“If this trend continues, the outflow from the Grayscale Ethereum ETF could end much quicker than it did for bitcoin in January, perhaps as early as mid-next week,” Eberhardt stated.
“After this, we estimate we will see strong net inflow, due to the inflow into the other ETFs as observed over the last few days.”
In contrast, SynFutures CEO and co-founder Rachel Lin stated that she anticipates short-term suffering for ETH traders.
Lin wrote in an email to CoinDesk, “As we saw with Bitcoin, Grayscale’s ETH ETF fund is becoming a net seller on the market with over $810 million in outflow since the ETF launch.”
Almost 10% of the roughly $8 billion worth of Ether that Grayscale now possesses was sold in the last two days alone. If this tendency keeps up, Grayscale may surpass 50% far sooner than Bitcoin.
That would, however, also mean further disadvantage for Ethereum.”
Aave performs better.
AAVE, the native token of the Aave decentralized finance (DeFi) system, is up 15% in response to a request for a token buyback, diverting attention from BTC and ETH.
The proposal would increase protocol revenue by purchasing AAVE tokens from the secondary market and redistributing them to stakers. It is presently in a “temp check” phase where feedback is requested.
