• The average entry price for buyers of U.S. BTC spot ETFs is between $61,000 and $60,000, and 10x Research warned that a drop below this range could trigger a wave liquidations.
  • Markus Thielen writes that the institutional wave of ETF purchases has not yet arrived.

BTC Price Index and Live Chart – CoinDesk”>(BTC) is currently flirting with could truly prove important.

Markus Thielen is the founder of 10x Research.

According to Farside Investors, since their debut on January 11, the 11 U.S. bitcoin spot ETFs have accumulated over $14 billion of net inflows. Thielen says that 30% of flows are a result of a nondirectional arbitrage strategy known as the basis trade, rather than outright bullish wagers.

BlackRock stated that heavyweight institutions such as sovereign wealth funds, pensions and endowments would likely trade in spot ETFs. JPMorgan revealed recently that 80% inflows to the spot ETFs were from existing crypto market players.

Thielen said that Blackrock had claimed that’sovereign funds and pension funds’ would be coming when Bitcoin dropped to 56,500 in May. This helped to arrest the decline. But now Blackrock claims 80% of its Bitcoin IBIT ETF purchases are from retail and not institutions.

Bitcoin’s price has fallen by nearly 14% over the past four weeks. This is mainly due to miners selling faster and using old wallets. Germany divesting its crypto holdings was also a factor. Gox is likely to spark a selling frenzy.

Bitcoin has fallen by 4% in the last 24 hours, trading at $60200. Earlier Friday morning it had dropped just below $60,000.

Stephen Alpher edited the book.