ETF buyers caught holding the bag as bitcoin nears $40,000

<p>Bitcoin is down $2000 today or 4.5% as the selling after the ETF debuts continues. Bitcoin rose as high as $49051 in the hour after the 11 US bitcoin ETFs were launched but a 'sell the fact' trade quickly emerged and it's been downhill ever since.</p><p>Today bitcoin held at the January lows of $41,200 for a period but after that broke it fell to $40,624, which is the lowest since December 18. The December low of $40,178 coincides with the $40,000 psychological level and that will be critical for the next phase of trading.</p><p>So far, the flows into bitcoin ETFs have been disappointing with about $2.9 billion landing in the new ETFs. However the GBTC Grayscale ETF has lost $1.6 billion and the futures-based BITO ETF has lost about $400 million. So that's a net $900 million into an $800 billion market.</p><p>There was some good news yesterday as flows seemed to pick up, especially into Blackrock's IBIT but that doesn't appear to be enough.</p><p>Prior to the launch of the ETFs, bulls were touting $2 billion in net inflows in the first two days and $50-100 billion by year end. Given what we're seen so far, those numbers look unlikely.</p>

This article was written by Adam Button at www.forexlive.com.