On the second day after the spot Bitcoin ETF was listed, the digital currency experienced another sell-off. Bitcoin's 24-hour decline once reached 6.46%, hitting a low of $43,179.57. Spot Bitcoin ETFs generally fell by about 6%. Among them, DEFI fell by more than 6.6%, FBTC fell by 6.4%, HODL and BRRR fell by 6%, BTCO fell by 5.9%, and BITO fell by 5.9%.


Blockchain concept stocks generally fell sharply. Among them, Yibang International ADR fell 13.6%, Hut8 fell 10.7%, The9 ADR fell 10.2%, Microstrategy Investment fell 8.5%, Canaan Technology ADR fell 8.3%, RiotPlatforms fell 7.4%, digital currency exchange Coinbase fell 6.2%, and Internet celebrity brokerage Robinhood fell 5.3%.

The U.S. Securities and Exchange Commission (SEC) approved on Wednesday that the first batch of spot Bitcoins will begin trading on Thursday, January 11. Bitcoin fluctuated sharply throughout the day. On Thursday morning, Eastern Time, Bitcoin rose above $49,000, setting a new high since December 2021, with an intraday increase of about 6.8%. However, the enthusiasm soon subsided, and Bitcoin turned lower during the day, returning to below $46,000. Related ETFs also fell.

Two consecutive days of poor performance caused considerable losses to investors who rushed in on the first day of Bitcoin’s listing. Calculated based on BlackRock’s ETF, they invested US$10,000 on Thursday and only had US$8,300 left on Friday.


Peter Schiff, a well-known American financial critic, said:

The sell-off in Bitcoin, Bitcoin ETFs, and other Bitcoin-related stocks has been surprisingly orderly so far. I wonder when the selling will become more aggressive.


In fact, judging from the capital flow data, in addition to some people directly selling Bitcoin to cash out, Bitcoin ETFs are also facing extremely fierce competition among themselves. Funds are transferred from ETFs with expensive fees to ETFs with cheap fees:

  • Although nearly half of yesterday’s Bitcoin ETF trading volume came from the Grayscale ETF, which also made the Grayscale ETF the third largest ETF in terms of trading volume on record, the trading volume does not represent the inflow/outflow of investors’ funds. The funds of the Grayscale ETF are actually outflows.

  • Wall Street Insights website has previously mentioned that after the fund’s initial launch preferential period, Bitwise’s BITB only charges a fee rate of 0.20%, which is the lowest among all ETFs and has the largest capital inflow. Other ETFs also had net inflows of funds to varying degrees.