The crypto market is waking up to unprecedented trends as prices rally flush with optimistic sentiments. One of the major curiosities driving this surge is Bitcoin comfortably holding above the $30,000 mark. The robust influx into Toronto’s Purpose Bitcoin ETF underscores a high retail demand for such products, giving U.S. firms with pending BTC applications a promising outlook with the Securities and Exchange Commission (SEC).
The largest digital asset is currently trading at $30,298, relatively flat over the last twenty-four hours, a stat attributed to a favorable ruling a court handed down in the Ripple-SEC case. However, as Joe DiPasquale, CEO of BitBull Capital, noted, after the market got heated, corrective movements are anticipated. According to him, the market is likely to consolidate around the current zone and under a massive market correction, Bitcoin is unlikely to stay below the $27k mark for long.
That leaves crypto enthusiasts pondering where the market might steer. Johnny Teng, Senior Researcher at LBank Labs, speculates price action to be influenced by open interest levels that reflect trader sentiment, and trending topics such as memes and artificial intelligence. He sees the trading volumes of Ether and other altcoins set to rise, even as Bitcoin’s price is expected to dip for short-term liquidity.
As Glassnode’s data reveals, investors are streaming into Purpose’s Bitcoin ETF, BTCC, with over 5638 BTC moving in the ETF in June and July. An approval of a spot Bitcoin ETF by the SEC appears imminent and this optimistic market trend has Bitcoin rallying. This success illustrates the insatiable appetite average investors have for a spot ETF Bitcoin product.
The majority of the stake in BTCC, Ontario’s largest Bitcoin ETF, is held by retail traders. Despite the firm being first to the market, and this factor often being key, this trend hardly guarantees they’ll keep the majority share of the market. This continued inflow highlights the benefits of being first to market, as retail customers don’t seem keen to relocate their investments to competitors, instead, they are putting in more.
Ophelia Snyder from 21Shares, in a recent interview about this first-mover phenomenon, revealed stark differences in assets between the first and second market in the scope of Bitcoin futures ETFs. Purpose’s BTCC has in its command over $852.5 million USD ($1.1 billion CAD) in assets under management and is still growing. This is a remarkable development taking into account the comparison between Canadian and U.S. brokerages, under which Canadians could easily abandon Toronto-listed BTCC for U.S. spot Bitcoin ETFs, while American retail traders are less likely or even unable to turn the tables.
It remains to be seen how these trends will unfold, but to hedge against possible losses, crypto traders are expected to navigate the terrain with extreme care.
Source: Coindesk
