[Bitcoin Now] Narrow Sideways Range Amid Lack of Catalysts... Up 2.57% Compared to Last Week

Diversification of Strategy Products Related to Physical ETFs

The price of Bitcoin, the leading virtual asset, has been maintaining a dull sideways trend after the positive news of the approval of a spot exchange-traded fund (ETF) in the United States earlier this year was realized.

According to the global virtual asset market tracking site CoinMarketCap, as of 2:30 PM on the 21st, the price of Bitcoin was recorded at 55.6 million KRW, up 0.06% from the previous day. Compared to the previous week, it rose 2.57%, and it is up 84.10% compared to one year ago.

Since the announcement of the U.S. Securities and Exchange Commission (SEC)'s approval of the spot ETF on the 10th (U.S. local time), Bitcoin's price has been fluctuating within a narrow range of 54 million to 59 million KRW.

In the virtual asset market, including Bitcoin, the catalysts have been exhausted. Although Bitcoin's price briefly broke through the 64 million KRW level on the night of the 11th, it fell back to the mid-50 million KRW range due to profit-taking and has shown little change since.

The supply and demand, which is a key factor influencing the price, is expected to require continuous monitoring. Hong Seong-wook, a researcher at NH Investment & Securities, stated, "The introduction of the Bitcoin spot ETF has caused significant changes on the demand side," adding, "On the supply side, 70% of Bitcoin issuance has not moved in the past year, and after the halving scheduled for mid-April this year, the new supply of Bitcoin is expected to decrease by half."

Meanwhile, the popularity of Bitcoin futures ETFs, which are relatively disadvantaged due to the emergence of the Bitcoin spot ETF, is believed to have declined. Ark Investment, led by Cathie Wood, nicknamed the 'Money Tree Sister,' is replacing its Bitcoin futures ETF holdings with Bitcoin spot ETFs. Asset management firm VanEck plans to delist its Bitcoin futures ETF.

Indirect investment products based on reverse and leverage strategies are diversifying. Researcher Hong said, "With the emergence of the Bitcoin spot ETF, related products may also appear," adding, "Roundhill's YBTC, a Bitcoin covered call ETF, has started trading, and Bitcoin spot ETF option products may also emerge."