Close Menu
  • News
    • Bitcoin
    • Altcoins
    • DeFi
    • Regulation
    • Market Cap
    • Web 3
    • Scam
  • Blockchain
  • NFT
  • Metaverse
  • Analysis
  • Learn
  • Blog
  • Contact
    • Tech7685@gmail.com
What's Hot

AI and Blockchain Dal Costs and downtime in transport

2025-06-03

Is Bitcoin of $ 250K possible this year? This research director thinks so

2025-06-03

Crypto analyst says that XRP community should pay attention to 4-6 June, here is why

2025-06-03
Facebook X (Twitter) Instagram
  • Contact
  • Terms & Conditions
  • Privacy Policy
  • DMCA
  • Advertise
  • BitcoinPlatform.com
Facebook X (Twitter) Instagram
Free Cryptocurrency – Bitcoin | Altcoins | Blockchain | News Stories Updated Daily
  • News
    • Bitcoin
    • Altcoins
    • DeFi
    • Regulation
    • Market Cap
    • Web 3
    • Scam
  • Blockchain

    AI and Blockchain Dal Costs and downtime in transport

    2025-06-03

    World Network is expanding the worldwide ‘proof of human’ technology as AI Deepfakes Surge

    2025-06-03

    Clearpool’s Ozean integrates Chainsight for secure RWA Oracle infrastructure

    2025-06-03

    BNB Chain launches AI Bot to help developers and block scammers

    2025-06-03

    World3ai cooperates with carv for AI agents driven with verifiable intelligence

    2025-06-03
  • NFT

    Solana Trump NFTS AirDroped to Crypto Dinner -Gasten – one already sold for $ 16k

    2025-06-03

    NFT -Market slips in May despite the growth of the buyers and profit of Bitcoin, Avalanche

    2025-06-02

    NFT -Market sees mixed results, polygon leads while Ethereum Collections is back

    2025-06-01

    Performance Art Duo Operator ‘Make Movement Collectible’ with NFTS

    2025-05-31

    NFT -Market sees $ 3.91 million volume on OpenSea in the midst of cryptopunks’ dominance

    2025-05-31
  • Metaverse

    Shib: The Metaverse – Part of the expanding Shiba Inu ecosystem

    2025-01-03

    Experience to Earn: Everdome’s Metaverse Frontier

    2024-12-30

    Beyond Bots: Meta Motivo and the Dawn of Human Digital Life

    2024-12-13

    Exploring NetVRk: What’s Behind This AI-Powered Virtual Universe?

    2024-10-28

    Council of Europe emphasizes the impact of Metaverse on privacy and democracy

    2024-09-05
  • Analysis

    Crypto analyst says that XRP community should pay attention to 4-6 June, here is why

    2025-06-03

    American Bitcoin ETFs Navigate $ 1.2 billion in the midst of the European approval of the retail trade

    2025-06-03

    A matter of time before Altcoins take a big dip against Bitcoin, according to analyst Benjamin Cowen

    2025-06-03

    Circle’s IPO attracts great interest rates, set for $ 7.2 billion rating

    2025-06-03

    Golfing analysis unveils the XRP pricer point for taking off

    2025-06-03
  • Learn

    What Is Yield Farming and How Does It Work?

    2025-06-02

    What Is Asset Tokenization? How It Works and Why It’s Important

    2025-05-30

    What Is DeFi 2.0 and Why It Matters

    2025-05-27

    Crypto Margin Trading: How It Works and How to Manage the Risks

    2025-05-26

    Wat is circulerende levering in cryptocurrency?

    2025-05-23
  • Blog
  • Contact
    • Tech7685@gmail.com
Free Cryptocurrency – Bitcoin | Altcoins | Blockchain | News Stories Updated Daily
Home»Bitcoin»Bitcoin: Why Spot ETFs May Not Be in the Best Interest of New Investors
Bitcoin

Bitcoin: Why Spot ETFs May Not Be in the Best Interest of New Investors

2023-11-23No Comments4 Mins Read
Share
Facebook Twitter LinkedIn Pinterest Email
  • Glassnode estimated a capital inflow of approximately $70 billion into a Bitcoin ETF.
  • There would be less Bitcoin immediately available to new investors.

The crypto market pinned its hopes on the possible adoption of a Bitcoin [BTC] spot exchange-traded fund (ETF), which many analysts believe would be a turning point for the king of cryptocurrencies.

If ETFs get the green light from the US Securities and Exchange Commission (SEC), they would expose BTC to a large group of institutional investors in traditional financial markets.

These changes were to be expected

While expectations were high, a logical question to ask was how much of the Bitcoin market would be available for spot ETFs. How much new capital would it attract?

In a report, on-chain research firm Glassnode estimated capital inflows of approximately $70 billion into a Bitcoin ETF. Of this, almost $60.6 billion should come from the stock and bond market, while about $9 billion would come from the gold market.

The calculations were based on well-considered assumptions about capital flows from the regular financial markets.

The assumptions were made after taking into account the ongoing challenges to these investment vehicles and Bitcoin’s growing narrative of the ‘digital store of value’.

The $70 billion figure seemed conservative compared to estimates from some other analytics firms. Last month, CryptoQuant predicted a capital inflow of $155 billion in the Bitcoin market after approval of the ETFs.

The shortage of supply could spell trouble for new investors

Beyond the demand side, Glassnode drew attention to the exposure of Bitcoin’s available supply to spot ETFs.

See also  Bitcoin Price Losses Steam Above $30K But The Bulls Are Not Done Yet

Short-term holders (STH), which are known to buy and sell frequently and are more sensitive to market fluctuations, are considered good indicators of liquid supply.

Short-term holders (STH) supply was at multi-year lows at the time of writing. This meant a marked reduction in the tradable supply of Bitcoin.

Source: Glassnode

Another way to look at the supply squeeze was through the illiquid supply indicator. The illiquid supply consisted of nothing but BTCs locked in wallets with poor spending histories.

As the chart below shows, illiquid supply has been steadily increasing over the past two years.

In contrast, the supply of liquids, which is much more likely to be traded, fell significantly over the same time.

To cut the long story short, there would immediately be less Bitcoin available to new investors.

Source: Glassnode

Furthermore, if limited supply cannot keep pace with new demand from spot ETFs, Bitcoin could face increased market volatility, according to Glassnode.

Bitcoin market becomes more sensitive to investments

It was also essential to study the sensitivity of the Bitcoin market to the inflow of new capital. The Realized Cap serves as a reliable instrument for this analysis.

Realized limit values ​​an asset based on the price of each of his coins when they last moved, instead of their market value. You can see it as a measure of the capital invested.

When new capital enters the market and investors snap up Bitcoins at a higher price, the realized limit typically sees an increase.

It is clear that conventional market capitalization would rise faster than realized capitalization.

See also  P2P.org extends Validatorservices to Babylon Genesis, in which a new era of Bitcoin deployment is unlocked

The sensitivity is therefore the ratio between the realized capital and the change in market capitalization. When the ratio is low, it means that the market is very sensitive.

Small amounts of invested capital would cause a significant change in market capitalization. Conversely, a higher ratio will require greater investments to increase Bitcoin’s market value

Source: Glassnode

At the time of writing, the ratio was $0.085. This meant that it only took $0.085 in capital investment to bring about a $1 change in market capitalization, indicating a very sensitive market.

However, the real test would come in the wake of the spot ETF’s launch.


Is your portfolio green? look at the BTC profit calculator


Bitcoin climbed above $37,000 in the past 24 hours and shrugged it off Binance-related FUD. The coin was trading comfortably at $37,341 at the time of writing, up 2.27% from the same time last day, according to CoinMarketCap.

According to the latest market updates, market sentiment was trending towards greed Bitcoin fear and greed index. This meant that more purchases could be made in the coming days, potentially causing prices to rise.

Source link

Bitcoin ETFs Interest investors Spot
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Is Bitcoin of $ 250K possible this year? This research director thinks so

2025-06-03

Altcoins near historical support: Bitcoin loses his crown?

2025-06-03

American Bitcoin ETFs Navigate $ 1.2 billion in the midst of the European approval of the retail trade

2025-06-03

Why $ 107,500 and $ 103,500 are the levels to watch

2025-06-03
Add A Comment

Comments are closed.

Top Posts

GRASS Price Prediction – Rejection at $2, but Is the Dip Good Enough to Buy?

2024-11-02

Crypto Analysts Predict XRP Price Rise Against BTC

2023-05-13

‘Dumb money’ will miss out, analysts warn

2023-12-28
Editors Picks

It was rumored that SEC would instruct Bitcoin ETF applicants to withdraw cash

2023-11-18

Solana whales collect 7500 Sol tokens worth $1.57 million.

2024-11-11

Short-Term Bitcoin Holders See 10% Gain – Potential Impact on Price?

2025-01-04

Binance’s new CEO confirms the strength of the company’s foundations

2023-11-22
About
About

Our mission is to develop a community of people who try to make financially sound decisions. The website strives to educate individuals in making wise choices about Cryptocurrencies, Defi, NFT, Metaverse and more.

We're social. Connect with us:

Facebook X (Twitter) Instagram Pinterest YouTube
Top Insights

AI and Blockchain Dal Costs and downtime in transport

Is Bitcoin of $ 250K possible this year? This research director thinks so

Crypto analyst says that XRP community should pay attention to 4-6 June, here is why

Get Informed

Subscribe to Updates

Get the latest news and Update from Free.cc about Crypto, Metaverse, NFT and more.

  • Contact
  • Terms & Conditions
  • Privacy Policy
  • DMCA
  • Advertise
  • BitcoinPlatform.com
© 2025 Free.cc - All rights reserved. Contact: info@free.cc

Type above and press Enter to search. Press Esc to cancel.

  • bitcoinBitcoin(BTC)$106,114.021.10%
  • ethereumEthereum(ETH)$2,622.052.97%
  • tetherTether USDt(USDT)$1.000.01%
  • rippleXRP(XRP)$2.274.19%
  • binancecoinBNB(BNB)$664.290.27%
  • solanaSolana(SOL)$160.143.90%
  • usd-coinUSDC(USDC)$1.000.01%
  • dogecoinDogecoin(DOGE)$0.1967322.43%
  • tronTRON(TRX)$0.2720261.51%
  • cardanoCardano(ADA)$0.691.44%
  • hyperliquidHyperliquid(HYPE)$36.903.32%
  • suiSui(SUI)$3.320.39%
  • chainlinkChainlink(LINK)$14.323.81%
  • avalanche-2Avalanche(AVAX)$21.463.66%
  • stellarStellar(XLM)$0.2753703.16%
  • unus-sed-leoUNUS SED LEO(LEO)$8.834.21%
  • bitcoin-cashBitcoin Cash(BCH)$405.331.31%
  • the-open-networkToncoin(TON)$3.21-0.82%
  • shiba-inuShiba Inu(SHIB)$0.0000132.02%
  • hedera-hashgraphHedera(HBAR)$0.1744873.30%
  • litecoinLitecoin(LTC)$90.231.28%
  • polkadotPolkadot(DOT)$4.193.14%
  • moneroMonero(XMR)$344.58-4.13%
  • ethena-usdeEthena USDe(USDE)$1.000.01%
  • bitget-tokenBitget Token(BGB)$4.832.62%
  • daiDai(DAI)$1.00-0.02%
  • pepePepe(PEPE)$0.0000136.20%
  • piPi(PI)$0.651.01%
  • uniswapUniswap(UNI)$6.726.89%
  • aaveAave(AAVE)$268.696.53%
  • bittensorBittensor(TAO)$392.65-2.08%
  • aptosAptos(APT)$5.025.28%
  • nearNEAR Protocol(NEAR)$2.555.22%
  • crypto-com-chainCronos(CRO)$0.1033851.10%
  • okbOKB(OKB)$50.090.66%
  • internet-computerInternet Computer(ICP)$5.388.21%
  • ondo-financeOndo(ONDO)$0.863.23%
  • ethereum-classicEthereum Classic(ETC)$17.743.63%
  • gatechain-tokenGateToken(GT)$19.411.06%
  • kaspaKaspa(KAS)$0.0907103.98%
  • mantleMantle(MNT)$0.680.19%
  • official-trumpOFFICIAL TRUMP(TRUMP)$11.401.71%
  • polygon-ecosystem-tokenPOL (prev. MATIC)(POL)$0.2177221.20%
  • usd1World Liberty Financial USD(USD1)$1.000.00%
  • vechainVeChain(VET)$0.0250133.52%
  • render-tokenRender(RENDER)$4.044.21%
  • artificial-superintelligence-allianceArtificial Superintelligence Alliance(FET)$0.8412.44%
  • ethenaEthena(ENA)$0.34110810.21%
  • worldcoin-wldWorldcoin(WLD)$1.238.93%
  • arbitrumArbitrum(ARB)$0.3688207.07%
  • bitcoinBitcoin(BTC)$106,114.021.10%
  • ethereumEthereum(ETH)$2,622.052.97%
  • tetherTether USDt(USDT)$1.000.01%
  • rippleXRP(XRP)$2.274.19%
  • binancecoinBNB(BNB)$664.290.27%
  • solanaSolana(SOL)$160.143.90%
  • usd-coinUSDC(USDC)$1.000.01%
  • dogecoinDogecoin(DOGE)$0.1967322.43%
  • tronTRON(TRX)$0.2720261.51%
  • cardanoCardano(ADA)$0.691.44%
  • hyperliquidHyperliquid(HYPE)$36.903.32%
  • suiSui(SUI)$3.320.39%
  • chainlinkChainlink(LINK)$14.323.81%
  • avalanche-2Avalanche(AVAX)$21.463.66%
  • stellarStellar(XLM)$0.2753703.16%
  • unus-sed-leoUNUS SED LEO(LEO)$8.834.21%
  • bitcoin-cashBitcoin Cash(BCH)$405.331.31%
  • the-open-networkToncoin(TON)$3.21-0.82%
  • shiba-inuShiba Inu(SHIB)$0.0000132.02%
  • hedera-hashgraphHedera(HBAR)$0.1744873.30%
  • litecoinLitecoin(LTC)$90.231.28%
  • polkadotPolkadot(DOT)$4.193.14%
  • moneroMonero(XMR)$344.58-4.13%
  • ethena-usdeEthena USDe(USDE)$1.000.01%
  • bitget-tokenBitget Token(BGB)$4.832.62%
  • daiDai(DAI)$1.00-0.02%
  • pepePepe(PEPE)$0.0000136.20%
  • piPi(PI)$0.651.01%
  • uniswapUniswap(UNI)$6.726.89%
  • aaveAave(AAVE)$268.696.53%
  • bittensorBittensor(TAO)$392.65-2.08%
  • aptosAptos(APT)$5.025.28%
  • nearNEAR Protocol(NEAR)$2.555.22%
  • crypto-com-chainCronos(CRO)$0.1033851.10%
  • okbOKB(OKB)$50.090.66%
  • internet-computerInternet Computer(ICP)$5.388.21%
  • ondo-financeOndo(ONDO)$0.863.23%
  • ethereum-classicEthereum Classic(ETC)$17.743.63%
  • gatechain-tokenGateToken(GT)$19.411.06%
  • kaspaKaspa(KAS)$0.0907103.98%
  • mantleMantle(MNT)$0.680.19%
  • official-trumpOFFICIAL TRUMP(TRUMP)$11.401.71%
  • polygon-ecosystem-tokenPOL (prev. MATIC)(POL)$0.2177221.20%
  • usd1World Liberty Financial USD(USD1)$1.000.00%
  • vechainVeChain(VET)$0.0250133.52%
  • render-tokenRender(RENDER)$4.044.21%
  • artificial-superintelligence-allianceArtificial Superintelligence Alliance(FET)$0.8412.44%
  • ethenaEthena(ENA)$0.34110810.21%
  • worldcoin-wldWorldcoin(WLD)$1.238.93%
  • arbitrumArbitrum(ARB)$0.3688207.07%