According to BitMEX Research, the research arm of the cryptocurrency exchange, all Bitcoin spot ETFs recorded a total net inflow of $255 million between January 11, 2024 and January 29, 2024, 12 days after the SEC’s approval.
While Grayscale’s GBTC saw million-dollar outflows on Monday, companies like BlackRock and Fidelity received a combined net inflow of $406 million on the same day.
Investors have poured millions of dollars into the Bitcoin spot exchange-traded funds (ETFs) recently introduced to the US market earlier this month.
Reduced Selling Pressure
The influx has become a focal point in evolving market dynamics, signaling a possible turnaround following Grayscale’s Bitcoin Trust (GBTC) sell-offs. Following the approval of the spot ETF on January 11, the asset manager witnessed significant outflows from its Bitcoin Trust, GBTC, last week, worth $3.9 billion, according to Bloomberg analyst James Seyffart.
This week, investors continued to withdraw their funds from the company, selling a total of 120,500 Bitcoin (BTC), a sum that amounted to approximately $5.508 billion. On Monday, data from SoSoValue revealed that the company saw a net outflow of $191 million in a single day compared to the $515 million it posted on Jan. 24, indicating a notable slowdown in the pace of sales.
That same day, BitMEX Research said the company experienced an outflow of $192 million. However, these numbers are relatively small compared to last week’s massive sales. Grayscale’s GBTC maintains a strong asset under management (AUM) position of around $21,431 million.
Bitcoin Breaks 50-Day SMA
While Grayscale’s GBTC saw million-dollar outflows on Monday, companies like BlackRock and Fidelity Investments received a combined net inflow of $406 million on the same day. Separate data from Farside Investors showed that Fidelity’s FBTC recorded an inflow of $208 million on January 29, 2024.
On January 25, JPMorgan analysts highlighted that GBTC outflows had contributed to a drop in the price of Bitcoin. Despite this, they were optimistic and suggested that the impact of these departures is expected to diminish shortly.
As the market responds to these changes, analysts have noted a notable slowdown in selling pressure, leaving a significant mark on the price of BTC. In the last seven days, the leading crypto asset has achieved an impressive 11.19% recovery and is now trading above $43,000, according to data from CoinMarketCap.
Market experts believe that the current level, above the 50-day SMA, is crucial in determining the strengthening of bullish or bearish momentum, emphasizing the importance of BTC’s move above the 50-day average,
Alex Kuptsikevich, senior market analyst at FXPro, told CoinDesk in an emailed statement that BTC’s move above the 50-day average is important, but it is not a criterion for a solid uptrend.
Earlier this year, VanEck advisor Gabor Gurbacs noted that one of the most crucial benefits of a bitcoin spot ETF comes from its ability to legitimize and destigmatize bitcoin in the eyes of institutional investors and nation-states.
Bitcoin Will Reach $170,000 After April Crash
Bitcoin’s move comes ahead of the long-awaited halving, scheduled for April. Historically, the Bitcoin halving event is known to be accompanied by a meteoric rise in the value of crypto assets.
As the industry eagerly anticipates BTC’s move after the halving, Anthony Scaramucci, founder of SkyBridge Capital, an alternative financial investment company, recently predicted that the crypto asset could reach as much as $170,000 after the event.
Scaramucci, who also serves as managing partner of the company, believes that BTC can achieve the intended result within 18 months of the next halving event.
By Audy Castaneda
