Bitcoin’s spot ETF approvals prove to be a sell the news event amid a 10% daily drop for the crypto asset.
Bitcoin plummeted 10% below $42,000 on Friday, triggering $338 million worth of crypto market liquidations.
The collapse erased most of the asset’s progress over the past month leading up to the approval of several Bitcoin spot ETFs for public trading in the United States.
According to Coinglass, over 101,000 crypto traders have been liquidated in the past 24 hours.
The largest individual liquidation took place on a Bybit BTC/USD trade for $4.5 million. Most liquidations ($271 million) were on long positions.
Bitcoin began the day trading at $46,300, with major volatility setting in after the stock market opened at 9:30 am ET. Just like Thursday, Bitcoin ETF products cumulatively handled over $1 billion of trading volume.
Altogether, the new ETFs soaked in $700 million worth of flows after the first day of trading. Meanwhile, Grayscale’s Bitcoin ETF suffered $95 million in outflows.
After the selloff, however, Bloomberg ETF analyst Eric Balchunas suspects that Grayscale likely suffered much worse outflows today.