Bitcoin fell below $41,000 on Monday morning as its price continues to decline following the approval of several spot Bitcoin ETFs in the US earlier this month.
According to data from CoinGecko, Bitcoin is currently trading at around $40,760, down 2.4% on the day and 4.5% over the past week.
The decline of the Price of Bitcoin has been linked to investors cashing out their winnings after approval and liquidating their positions in the Grayscale Bitcoin Trust (GBTC) after it was converted into a spot Bitcoin ETF.
Before the fund converted to a spot ETF, GBTC shares were only available to accredited investors and were subject to a six-month lock-up period after purchase.
With investors now able to exchange their GBTC shares for Bitcoin, more than $2.2 billion has left the fund in the last week, prompting Grayscale to transfer hundreds of millions of dollars in BTC to its custodian Coinbase to transfer in order to sell them. These outflows have contributed to selling pressure on BTC, driving the price lower in the two weeks since US spot Bitcoin ETFs were approved.
Analysts have also argued that the ETF approval was “priced in” – meaning BTC would not see dramatic or sustained gains following approval – prompting crypto investors to “sell the news” following the ETF approval.
The broader crypto market slipped in lockstep with Bitcoin, falling 2.7% to $1.68 trillion over the past day, according to CoinGecko data. The global crypto market cap rose as high as $1.86 trillion the day after the SEC approved 11 spot Bitcoin ETFs for trading. Of the top 10 cryptocurrencies by market cap: Solana And Cardano fell the most over the past day, falling by 5.5% and 4.9% respectively.
Edited by Stacy Elliott.
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