BTC's recent correction is due to excessive expectations around ETF approval

"BTC's recent correction is due to excessive expectations around ETF approvals," said Matt Hougan, chief investment officer at crypto asset manager Bitwise, one of the issuers of the Bitcoin Spot ETF, on X (formerly Twitter). "Strictly speaking, this correction is not an ETF-driven selloff. Even including GBTC, ETFs are net long BTC. It's just that the excessive market expectations prior to the launch of the ETFs led to overbought positions in the cash and derivatives markets, and now those bets are being unwound. While the market has overestimated the short-term impact of ETFs (buying), it is also underestimating the long-term positive impact". Earlier, Arthur Hayes, co-founder of BitMEX, said: "The recent BTC correction is not caused by capital outflows from GBTC. All spot ETFs, including GBTC, have seen net inflows of approximately $820 million year-to-date".