Skip to content
Crypto News Focus logo CNF_CRYPTO_NEWS_FOCUS_LOGO 8

Crypto News Focus

your day to day crypto news site

Primary Menu
  • Home
  • News
    • Bitcoin News
    • Ripple XRP news
    • Ethereum News
    • Cardano News
    • Shiba Inu News
    • Pi Network News
    • More
  • Analysis
  • PR Desk
  • About Us
  • General Policy & Privacy
  • Guides
    • Bitcoin Guides
    • Pi Network Guide
    • Cardano Guide
  • Politics
  • Tech
  • Home
  • News
  • Bitcoin (BTC) ETF Bargains: Seizing the Sell-Off Opportunity
  • News

Bitcoin (BTC) ETF Bargains: Seizing the Sell-Off Opportunity

vivian 9 July 2024
Bitcoin on fire
  • Bitcoin’s recent price drop has created an opportunity for investors to buy Bitcoin ETF shares at discounted prices.
  • The ongoing market volatility and impending large-scale liquidations could lead to significant arbitrage opportunities for savvy traders.

Bitcoin’s recent dramatic sell-off has created a unique buying opportunity for savvy investors looking to acquire Bitcoin ETF shares at discounted prices. As Bitcoin’s price plummeted to a four-month low of around $53,500, the market braced for significant liquidations from Germany’s government and the defunct Japanese crypto exchange, Mt. Gox. This volatility is impacting top Bitcoin ETFs, making their shares more attractive.

The Impact of Market Volatility on Bitcoin ETFs

Bitcoin ETFs like Franklin Templeton Digital Holdings Trust (EZBC), VanEck Bitcoin Trust (HODL), and iShares Bitcoin Trust (IBIT) have become the preferred choice for spot BTC holders since U.S. regulators approved these funds in January. However, these funds’ enhanced investor protections and security measures have led to shares trading at a premium to the net asset value (NAV) of their underlying BTC holdings. As of early July, shares of the top five Bitcoin funds had an average premium of nearly 1%.

ETFs rely on “authorized participants” (APs) to keep share prices aligned with the fund’s NAV. These professional market makers are the only ones allowed to trade BTC ETF shares for spot BTC, profiting from intraday pricing spreads. Due to the limited number of APs capable of handling BTC spot trading, ETF shares are susceptible to significant price swings in volatile markets. The anticipated liquidations from Germany and Mt. Gox could lead to continued selling pressure, creating wider ETF price swings and potential arbitrage opportunities.

Seasoned traders are familiar with NAV discounts. In late 2022, Grayscale Bitcoin Trust (GBTC) shares traded at discounts nearing 50% of NAV due to investor concerns about the fund’s regulatory future. Traders who anticipated regulatory approval saw substantial gains, as GBTC now trades at a 0.04% premium.

Although a repeat of GBTC’s extreme arbitrage situation is unlikely, current market conditions still present opportunities. For instance, in May, BlackRock’s IBIT ETF briefly dipped to a nearly 2% discount as institutional investors rebalanced amid market volatility. Other funds, including FBTC, BITB, and ARK 21Shares Bitcoin ETF (ARKB), also experienced discounts around 1.5%.

With the impending BTC liquidations by Germany and Mt. Gox, market volatility is expected to rise, potentially leading to similar ETF arbitrage opportunities. ETFs such as EZBC, HODL, and IBIT, sponsored by reputable asset managers, are offering attractive management fee discounts, with some even waiving fees until 2025.

Investors willing to navigate the current market turbulence could benefit significantly. Despite the selling pressure, Bitcoin is poised for a bullish resurgence later in the year, driven by anticipated Federal Reserve interest rate cuts and favorable odds for political stability in the United States. Now might be the perfect time to seize the opportunity and invest in discounted Bitcoin ETF shares.

Continue Reading

Previous: Terra Luna Classic (LUNC) Sees Unprecedented Staking Activity
Next: Terra Luna Classic LUNC: The Path to Recovery & $1 mark

Related Stories

Ripple XRP on BLUE
  • News

Ripple Pushes New Crypto Rules to Limit SEC’s Power

Cal Evans 30 May 2025
Tron TRX coin
  • Analysis

Tron Flips Cardano in Market Cap as TRX Eyes $0.30 — But Trouble Looms

Sean Williams 30 May 2025
dogecoin on marbles
  • Analysis

Dogecoin Drops 10% as Traders Eye Rebound from Soaring Volume

vivian 30 May 2025

For general inquiries, please email us at Info@cryptonewsfocus.com

Crypto news focus is your day-to-day crypto news site. Get all the latest News and trends in the crypto, blockchain, and DeFi space. For more info and inquiries, reach out via email at info@cryptonewsfocus.com

You may have missed

Ripple XRP on BLUE
  • News

Ripple Pushes New Crypto Rules to Limit SEC’s Power

Cal Evans 30 May 2025
Tron TRX coin
  • Analysis

Tron Flips Cardano in Market Cap as TRX Eyes $0.30 — But Trouble Looms

Sean Williams 30 May 2025
dogecoin on marbles
  • Analysis

Dogecoin Drops 10% as Traders Eye Rebound from Soaring Volume

vivian 30 May 2025
PEPE COIN IMAGE
  • Analysis

PEPE Eyes New Highs in June Backed by Strong Whale Accumulation

Jane Kariuki 30 May 2025

Social Media

Crypto News Focus © All rights reserved | MoreNews by AF themes.
Go to mobile version
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.Ok