According to U.Today, the Bitcoin (BTC) price has seen a significant drop, leading to panic in the spot Bitcoin ETFs segment. Analysts are questioning the rationality of this panic-selling. Qiao Wang, a seasoned cryptocurrency investor and cofounder of Messari, has referred to the May 1 session as the 'worst day by far' for exchange-traded funds based on spot Bitcoin (BTC). During this session, the net volume of funds in BTC ETFs lost $500 million.
Fidelity Investments’ Fidelity Wise Origin Bitcoin Fund (FBTC) accounted for the largest part of this loss, being down by $191 million. Meanwhile, products from Grayscale and ARK combined cover over 50% of the half-billion losses. Wang agreed with his colleague Jim Bianco's observation of a large percentage of 'paper hands' among the first generation of Bitcoin spot ETF holders. The Bitcoin ETFs segment also experienced three difficult trading days on April 24, 25, and 30, with the May 1 session marking the sixth consecutive 'red' day for Bitcoin ETFs.
Previously, spot Bitcoin ETFs were launched in Hong Kong, ending their first day of trading with a mediocre AUM of $140 million and a trading volume of $12.1 million in equivalent. Despite the current market conditions, Wang remains moderately optimistic about the future generations of Bitcoin Spot ETFs purchasers. He believes that more 'diamond hand' institutions will enter the scene, stating that heavyweight asset managers just 'need time to get comfortable'. Following the Bitcoin (BTC) price drop below $57,000, almost $600 million in liquidated long positions were registered over the last two days, according to CoinGlass data.