Automated ETF Trading Bots Create Volatility for Bitcoin Investors in Asia
Bitcoin investors in Asia are contending with volatile market swings influenced by automated trading bots that react to data from U.S. Bitcoin ETFs, according to Bloomberg. Crypto executives have acknowledged the significant impact of these bots, which can automatically analyze data and execute trades based on it. On April 2, Bitcoin prices experienced a sharp decline during the Asian trading session, coinciding with indications of investors withdrawing funds from ETFs. This caused the broader crypto market to become more volatile. The approval of several spot Bitcoin ETF applications by the U.S. Securities and Exchange Commission earlier this year led to approximately $12 billion in net inflows. However, subsequent periods of outflows have contributed to Bitcoin’s current decline from its peak. Despite this, Galaxy Digital CEO Michael Novogratz remains optimistic and anticipates potential approval for spot Ethereum ETFs later in the year.
