The Bitcoin ETFs generated strong volumes on Jan. 11, but that did not translate into higher prices in Bitcoin, indicating that the event was largely priced in.
The United States regulator finally green-lighted the Bitcoin (BTC) spot exchange-traded fund applications on Jan. 10, and several ETFs started trading on Jan. 11. The outcome was so extensively discussed that the event did not result in a massive spike or a sharp sell-off, suggesting that the approval was largely priced in.
Even without any bullish tailwind, the Bitcoin ETFs generated enough interest among traders. Data shows that the combined trading volume in the newly launched Bitcoin ETFs touched $4.5 billion on day one of trading.
After an initial correction, Bitcoin may enter a range in the near term as traders wait for the institutional flows into Bitcoin ETFs to begin. However, in the long term, Bitcoin ETFs, along with Bitcoin halving in April 2024, are likely to cause a supply squeeze, boosting prices higher.
