I don't think that buying OTC doesn't impact the BTC price.
It does, please read below.
You said well, the only reason causing less volatility in the current spot BTC market is due to the OTC trading, but one thing I don't understand is BTC market is driven by the factor of demand and supply but it also drove by the influence of the sentiments of the investors. If one of the ETFs companies is selling and buying from each other then why would it impact the market.
The market works with speculation from participants, with fear and greed.
Even buying bitcoin through OTC market will not directly affect price on Spot market, it will impact in another way, indirectly. Like people in the market will make their speculation and feel greedy.
You need example, let's use what media and people expected when FED announced plan to increase interest rate. They will speculate much higher interest rate and total times of increases from FED than what FED actually do.
When FED announced that they are going nearly to a time point for decreasing interest rate, people will speculate it more positively than what will be actually executed by FED in future.
Why do you think they will chose market instead of OTC trading?
If you read my posts above, you can see I wrote that supply for OTC market is limited and surely smaller than for Spot market. Bitcoin Spot ETFs will massive capital to spend, will sooner or later have to buy bitcoins more in spot market than in OTC market.
I don't say they will stop accumulation through OTC market 100% but they will still do it through both markets. It's just Spot market will be bigger resource for them in future.
Some updates on Bitcoin Spot ETFs trading.
- Their total accumulated bitcoins already surpassed what MicroStrategy is holding.
- Selling pressure from Grayscale deceases as expected.
- After 26 days of trading, mostly we have green days with buying outperforms selling.