In a notable turn of events, Bitcoin’s valuation has slid beneath $41,000 as a result of investors exiting the SEC-sanctioned Grayscale Bitcoin Trust.

Decentralized cryptocurrency Bitcoin (BTC) has seen its price dip below $41,000 on Monday morning, part of an ongoing trend after the SEC approved several spot Bitcoin ETFs in the U.S. SEC ) earlier this month. At present, Bitcoin At the moment of writing, Bitcoin is trading around $40,960, reflecting a decline of 2.4% on the day and a 4.5% slide over the past week, according to CoinGecko statistics.

This downturn in Bitcoin's price can be attributed to investors taking profits after the ETF approval and subsequently withdrawing their investments. Grayscale Bitcoin Trust (GBTC) This price drop followed the fund's shift to a spot Bitcoin ETF, changing the investment landscape.

Prior to becoming a spot ETF, shares of GBTC were available solely to accredited investors and came with a six-month lock-in period following purchase.

Currently, with the opportunity to redeem GBTC shares for Bitcoin, over $2.2 billion has left the fund just in the past week. Grayscale has moved hundreds of millions of dollars in Bitcoin to Coinbase for liquidation, creating added selling pressure on Bitcoin and contributing to its price decrease over the two weeks since the SEC's approval of the spot Bitcoin ETFs.

Analysts have observed that the price movements surrounding the spot ETF approval were 'priced in', indicating that a significant or prolonged rise in Bitcoin's value wasn't expected right after the approval. This sentiment has prompted a 'sell the news' trading strategy among cryptocurrency enthusiasts. approval of the ETF The broader cryptocurrency market mirrored Bitcoin’s decline, falling by 2.7% in just one day to a total of $1.68 trillion, as reported. aftermath of the ETF approvals.

The Crypto Market’s Reaction 

The global crypto market cap, which peaked at $1.86 trillion right after the SEC greenlit 11 spot Bitcoin ETFs for trading, has now taken a hit. CoinGecko data In the top 10 cryptocurrencies ranked by market cap, two have seen notable decreases in value over the past day, dropping by 5.5% and 4.9%, respectively.

The decline in Bitcoin’s valuation is a direct result of the SEC approving spot Bitcoin ETFs, which has encouraged investors to secure their profits and exit the Grayscale Bitcoin Trust (GBTC) after its ETF conversion, leading to heightened market turbulence. Solana and Cardano Securities and Exchange Commission

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