{"id":274923,"date":"2024-03-31T17:44:15","date_gmt":"2024-03-31T12:14:15","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=274923"},"modified":"2024-03-31T17:44:15","modified_gmt":"2024-03-31T12:14:15","slug":"interest-in-bitcoin-spot-etf-falls-blame-memecoin-mania-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/interest-in-bitcoin-spot-etf-falls-blame-memecoin-mania-crypto-news\/","title":{"rendered":"Interest in Bitcoin spot ETF falls: Blame memecoin mania? &#8211; Crypto News"},"content":{"rendered":"<p><\/p>\n<div>\n<ul>\n<li><em><span style=\"font-weight: 400\">BTC\u2019s supply absorption by spot ETFs has turned negative.<\/span><\/em><\/li>\n<li style=\"font-weight: 400\"><em><span style=\"font-weight: 400\">This suggested a temporary decline in interest in BTC spot ETFs.\u00a0<\/span><\/em><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">The recent decline in <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/ambcrypto.com\/category\/bitcoin-news\/\" data-wpel-link=\"internal\">Bitcoin\u2019s [BTC]<\/a> supply absorption by spot Bitcoin exchange-traded fund (ETF) has indicated a drop in interest in this asset class. <\/span><\/p>\n<p><span style=\"font-weight: 400\">This was noted by pseudonymous CryptoQuant analyst Oinonen_t in a new <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/cryptoquant.com\/insights\/quicktake\/6607c5fb3177430cdc6e56aa-Projected-Supply-Absorption-of-Spot-ETFs-Turns-Negative\" data-wpel-link=\"external\">report.<\/a>\u00a0<\/span><\/p>\n<h4><strong>The BTC spot ETF market witnesses a slight decline<\/strong><\/h4>\n<p><span style=\"font-weight: 400\">BTC\u2019s supply absorption by BTC ETFs tracks the rate at which newly mined coins are acquired or absorbed by these funds. <\/span><\/p>\n<p><span style=\"font-weight: 400\">This metric is important because increased supply absorption from spot ETFs could potentially lead to upward price pressure on BTC.<\/span><\/p>\n<p><span style=\"font-weight: 400\"> Conversely, a decreased demand can signal a potential decline in the leading coin\u2019s value.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Oininen_t found that the coin\u2019s supply absorption recently turned negative and dropped to a low of -0.38. Confirming the position above, the analyst opined,<\/span><\/p>\n<blockquote>\n<p><span style=\"font-weight: 400\">\u201cDespite the hype around upcoming halving in 21 days, bitcoin\u2019s spot price hasn\u2019t moved dramatically within the past 30 days. One explanation for the stagnant price action is the negative supply absorption of the ETFs.\u201d<\/span><\/p>\n<\/blockquote>\n<p><span style=\"font-weight: 400\">The analyst added that when spot ETFs cannot absorb the newly mined coins, <\/span><\/p>\n<blockquote>\n<p><span style=\"font-weight: 400\">\u201cThe demand for the approximately 900 bitcoins issued daily must come from other sources.\u201d<\/span><\/p>\n<\/blockquote>\n<p><span style=\"font-weight: 400\">However, in the current market, the retail investors who usually accumulate these coins have shifted their attention towards meme coins. <\/span><\/p>\n<p><span style=\"font-weight: 400\">In the past few weeks, the values of some <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/ambcrypto.com\/category\/solana-news\/\" data-wpel-link=\"internal\">Solana [SOL]<\/a>-based meme coins have grown by triple-digits, leading to a significant uptick in the meme coin market capitalization.<\/span><\/p>\n<hr \/>\n<p style=\"text-align: center\">Read\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/ambcrypto.com\/predictions\/bitcoin-price-prediction\" data-wpel-link=\"internal\">Bitcoin\u2019s [BTC] Price Prediction<\/a>\u00a02024-25<\/p>\n<hr \/>\n<p><span style=\"font-weight: 400\">According to Oininen_t,<\/span><\/p>\n<blockquote>\n<p><span style=\"font-weight: 400\">\u201cAlthough retail investors have shown growing interest towards bitcoin, their focus might be on the new Solana-based tokens and \u201cmeme coins.\u201d<\/span><\/p>\n<\/blockquote>\n<p><span style=\"font-weight: 400\">Concluding that the negative supply absorption is a temporary drawback in the spot ETF market, the analyst said,<\/span><\/p>\n<blockquote>\n<p><span style=\"font-weight: 400\">\u201cThe bigger picture still looks promising. In a multi-year scenario, I see bitcoin trying to reach market capitalization parity with gold, which would mean a 1000 percent upside to the current spot price.\u201d<\/span><\/p>\n<\/blockquote>\n<p><span style=\"font-weight: 400\">Since its launch, the volume of Bitcoin spot ETFs have grown significantly. Sitting at $182 billion at press time, the daily cumulative volume for this asset category has climbed by over 3500%.<\/span><\/p>\n<div id=\"attachment_380589\" style=\"width: 2570px\" class=\"wp-caption aligncenter\"><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2024\/03\/Cummulative-BTC-Spot-ETF-Volume.png\" data-wpel-link=\"internal\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-380589\" class=\"size-full wp-image-380589\" src=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2024\/03\/Cummulative-BTC-Spot-ETF-Volume.png\" alt=\"Cumulative BTC Spot ETF Volume\" width=\"2560\" height=\"781\" \/><\/a><\/p>\n<p id=\"caption-attachment-380589\" class=\"wp-caption-text\">Source: The Block<\/p>\n<\/div>\n<p><span style=\"font-weight: 400\">With an asset under management (AUM) value of $24 billion, the Grayscale Bitcoin Trust (GBTC) currently holds the largest market share in the BTC spot ETF market.\u00a0<\/span><\/p>\n<div class=\"post-nav\">\n<div class=\"next-blog\">\nNext: <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/ambcrypto.com\/theres-more-to-flokis-4-price-surge-than-you-can-see\/\" data-wpel-link=\"internal\">There\u2019s more to FLOKI\u2019s 4% price surge than you can see<\/a> <\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>BTC\u2019s supply absorption by spot ETFs has turned negative. This suggested a temporary decline in interest in BTC spot ETFs.\u00a0 The recent decline in Bitcoin\u2019s [BTC] supply absorption by spot Bitcoin exchange-traded fund (ETF) has indicated a drop in interest in this asset class. This was noted by pseudonymous CryptoQuant analyst Oinonen_t in a new [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":274924,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[230,225,221,227,226,228,229,60,223,224,222],"class_list":["post-274923","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-brave","tag-coinbase","tag-crypto","tag-decentralised","tag-decentralized","tag-decentralized-exchange","tag-erc-20","tag-featured","tag-meme-coin","tag-robinhood","tag-solana"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/274923","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=274923"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/274923\/revisions"}],"predecessor-version":[{"id":274926,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/274923\/revisions\/274926"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/274924"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=274923"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=274923"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=274923"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}