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Bitcoin is now down more than 20% from the peak reached just minutes after the new slate of ETFs began trading.

Bitcoin chart

Support at $40,000 held several times last week but broke yesterday and the selling has continued today.

So far, the ETFs have only proven to be exit liquidity for those who front-ran a launch that was inevitable after the SEC lost the Grayscale case. I highlighted the reasons why it would be a ‘sell the fact’ trade before the launches.

Even by low standards, the flows into bitcoin ETFs have been a disappointment. The total money in all the new ETFs are $4.5 billion, which is around where I thought they would be after two days. Moreover, there has been a $3.5 billion flowing out of GBTC and roughly $500m flowing out of BITO, so the net is less than $1 billion.

That’s certainly not enough to hold a market that expanded to $800 billion from $460 billion in large part due to ETF hype.

The other trade after the ETF launch appeared to be people trying to front-run an ethereum ETF approval. That started out better has rapidly soured with ETH falling 6% in back-to-back days.

ETH daily

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