On Friday Eastern Time, the second day of Bitcoin's spot ETF listing, Bitcoin prices plummeted by more than 6%, just one step away from $43000, and cryptocurrency concept stocks also saw a general decline.
The US Securities and Exchange Commission (SEC) approved the first batch of US Bitcoin ETFs on Wednesday, hailed by the cryptocurrency community as a game changing move that allows mainstream investors to buy and sell Bitcoin as easily as buying and selling stocks and mutual funds.
The previous day, Bitcoin soared to $49058.48, the highest level since December 2021.
Many investors also have this expectation that the long-awaited approval of Bitcoin spot ETFs will trigger a sell-off, as Bitcoin has risen by more than 60% in the past three months and the market has already digested this big positive news.
CryptoQuant, a cryptocurrency service provider, predicted last month that Bitcoin is expected to decline to $32000 next month after the approval of spot ETFs, which is a "selling news" event.
Market participants generally believe that the price of Bitcoin will benefit from ETF listings, but this will take some time, as new cryptocurrency investors become more familiar with this asset and gradually enter the market, Bitcoin will reach new highs.
Citigroup analyst Alex Saunders said in a report on Friday, "In our view, the cryptocurrency market has entered the next stage, with Ethereum's gains now surpassing Bitcoin, possibly due to expectations that Ethereum spot ETFs may also be approved."
Steven McClurg, Chief Investment Officer of Valkyrie Funds, stated that he would not be surprised if Ethereum and Ripple Coin spot ETFs were approved for listing alongside Bitcoin spot ETFs.
The SEC will begin making decisions on Ethereum spot ETF applications in May, with BlackRock, Kingsoft, Ark Investment, VanEck, and Grayscale among the companies waiting for approval. These companies hope to convert Ethereum Trust into Ethereum ETF.
Saunders pointed out that spot Bitcoin ETFs may become an asset in a diversified portfolio of stocks and bonds, and should have a place in the portfolio in the coming years.
On Friday, cryptocurrency concept stocks generally fell sharply, with BlackRock's spot Bitcoin ETF (IBIT) falling nearly 6%, Coinbase falling more than 6%, Marathon Digital falling 12.5%, and Riot Platforms falling 7%.