Illustration by Mitchell Preffer for Decrypt.
It's been just over a week since the spot Bitcoin exchange-traded funds (ETF) launched, and crypto markets are suffering.
According to CoinGecko, Bitcoin (BTC) has lost more than 10% of its value in the past week. The largest digital coin by market capitalization is currently priced at $41,002.
Last week the price was just under $49,000.
The long-awaited Bitcoin ETFs have been a resounding success – BlackRock's iShares ETF has raised over $1 billion in assets under management.
So why the price drop? It probably has something to do with investors cashing out their gains from the initial ETF hype.
Some analysts said ETF approval was already “priced in.” This likely means that traders and investors would likely not continue buying after official approval.
The rest of the crypto market was also hit hard last week. Solana (SOL) has lost over 7% of its value in the past week, trading at $92.38.
While Avalanche (AVAX) is down more than 14%, it is trading at $32.82. Both assets had performed very well in December as they attracted interest from institutional investors.
Meanwhile, Ethereum (ETH), the second largest digital coin, has lost 8% of its value in the past week. The price is now $2,466.
After the US Securities and Exchange Commission approved ten spot BTC ETFs, the cryptosphere is now waiting for the drop in ETH spot ETFs.
Wall Street's top regulator on Thursday pushed back its deadline for a decision on Fidelity's proposed spot Ethereum ETF to March 5, prompting a plunge in the asset's price.
The total crypto market is currently worth $1.7 trillion after falling 2.8% in the last 24 hours.
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