There are currently around 19.5 million Bitcoin in circulation. However, only 12 percent of these are available for trading on stock exchanges. The rest is stored long-term in cold storage.
With regard to the Bitcoin Spot ETF, this leads to significant price pressure – at least in the long term. Because: The majority of BTC purchases from BlackRock, Fidelity and Co. are currently carried out via so-called “OTC deks”.
Such “over the counter” purchases are commonplace in the financial world. In order not to influence the price, institutional investors usually buy large quantities of an asset over the counter. This was also the case on the first day of trading for the eleven Bitcoin ETFs. Accordingly, Coinbase recorded OTC transactions worth $7.7 billion.
At some point, however, OTC trades also have an impact on the price. By then at the latest, the BTC price should follow suit.
You can find out what else BTC investors should know about the Bitcoin ETF and what the cryptocurrency is doing in general in the new BTC-ECHO Bitcoin Report.
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