Bitcoin ETFs have finally arrived. Was the launch as exciting as the hype? The answer to this question is yes. In just six days, 11 new ETFs amassed assets worth nearly $4 billion. The products traded $10 billion worth of volume in their first three days.

Grayscale’s Bitcoin ETF, GBTC, saw outflows of $2.8 billion. Before receiving ETF status, GBTC traded at a significant discount to its NAV, or fair value. Holders who feel trapped are clearly using the ETF to exit the product. analysts agree that even though it wasn’t the largest ETF launch in history as some expected, this was still a major event.

The launch was a sell-the news event. Bitcoin and the companies linked to the industry have been trading consistently lower for the week following the launch. This period of weakness is likely to be short-lived. Investors closely monitor the GBTC sales for signs that the selling has slowed down. When that happens, I anticipate many mainstream investors who were sitting out recent volatility will step in the market with size.

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It’s not clear if they will start purchasing back publicly traded companies that have exposure to crypto assets.

In December, investors bought shares of crypto-behemoths such as Riot Blockchain and Bitcoin miners. The Harvest Blockchain index which includes many of these shares, rose by 40% in December and outperformed Bitcoin and Ethereum. Since the launch of these names, they have lost nearly all their gains (see Chart #1), and are underperforming dramatically.

These companies were the only ones in the public market that allowed investors to gain exposure to the growth of the asset class. The price of Bitcoin impacted their fortunes. Investors will now start to evaluate these businesses on their merits, as ETFs are easily accessible. They won’t go up just because Bitcoin does. These businesses must also be run well!

All are suffering in roughly equal amounts at the moment. There is a large gulf between the quality of some of these companies. This will become apparent as the dust settles after the ETF sell-off.

Analysts are worried that Coinbase will lose out on high-margin fees from retail trading due to the ETF launch. They also worry that low-margin fees from custody and institutional trade for many of these ETFs may not make up for this.

Retail could be a major factor if asset classes continue to grow. Coinbase is a platform with more than 110 millions users, mainly in the U.S. There are unlikely to be ETFs available for many crypto-assets. This means that Coinbase will continue to dominate the retail market.

Bitcoin miners are also facing a lot of challenges. The Bitcoin hashrate (a measure of security for the network) is at an all-time low, which means that miners will need to use more computing power in order to earn new rewards. Bitcoin’s halving is expected to take place in April and will reduce the block rewards by half. This will mean that there will be fewer blocks to distribute. Bitcoin Ordinals (also known as “NFTs” for Bitcoin) are causing a split in the community. Miners cannot rely on the added revenue generated by these novel implementations.

Some miners may thrive in this environment. But the days when rising crypto tides lifted all boats have passed. Some may find this a hard pill to swallow, especially those who purchased these names in the hope that an ETF would ensure a large gain. In the end, this is a good thing for the industry. Investors now have a wider range of options, and companies are more motivated to run profitable businesses. These are both signs that the crypto industry is growing.

Benjamin Schiller is the editor.