"Buy the rumor, sell the fact" Bitcoin falls to its lowest level since the approval of ETF.

Zhitong App noticed that the price of Bitcoin has dropped to its lowest level since the approval of nearly 12 ETFs holding this cryptocurrency by the United States last week.

Bartosz Lipiński, CEO of Cube, said, "It makes sense for traders to shift their focus elsewhere now that the hype around ETFs has subsided." He added, "The current options positions suggest that the support level is around $40,000, which is a significant psychological price point."

The largest cryptocurrency, Bitcoin, fell by 4.3% to $40,809, a drop of about 11% since the signing of the US Securities and Exchange Commission on January 10th. Bitcoin rose nearly 160% last year, and the market is optimistic that these funds will expand demand.

This has led traders to closely monitor the funds flowing into ETFs. The inflow of funds into BlackRock's funds has exceeded $1 billion, making it the first fund to surpass this milestone since trading began last Thursday.

Data shows that investors deposited $371 million into BlackRock's IBIT Bitcoin ETF on Wednesday, pushing the ETF past this milestone. Fidelity Investments followed closely behind. The company's FBTC Bitcoin ETF received $358 million in inflows yesterday, the highest single-day inflow since the fund was launched a week ago. In total, about $880 million flowed into Fidelity's funds. BlackRock and Fidelity have driven the early integration of new assets, with the two companies accounting for 68% of the total inflows into all nine new ETFs on the market, totaling nearly $2 billion.

Data shows that a large portion of the inflows came from investors exiting Grayscale Investment's GBTC fund. Grayscale's Bitcoin Trust was established in 2013 and managed over $28 billion in assets when it converted to an ETF, but there has been an outflow of approximately $1.6 billion since trading began.

Michael Safai, founding partner of quantitative trading firm Dexterity Capital, said, "Another unique issue is the situation with GBTC." He added, "Many investors were waiting to exit their positions until after the Grayscale discount collapsed. Now that the discount has effectively disappeared, some newly freed traders may have sold and are waiting to re-enter the ETF shortly."

Grayscale's Bitcoin ETF has a management fee of 1.5%, ranking among the highest in the industry. The management fees of BlackRock and Fidelity are only a small fraction of the cost of GBTC, but in the newly launched Bitcoin ETFs, their management fees are not the lowest - that title belongs to Franklin Templeton, with a management fee of 0.19%. Despite Franklin's low fees, it has received less than 2% of the inflows in the entire Bitcoin ETF group.

Listed companies related to the digital asset market have also extended their decline. The largest cryptocurrency exchange in the United States, Coinbase, fell by about 6.7%, and has fallen by 17% since its approval. Bitcoin miner Marathon Digital fell by 6.9%, and Bitcoin proxy agency MicroStrategy fell by 3%.