US Bitcoin ETFs Attract $255 Million in Investments

While Grayscale’s GBTC saw outflows running in millions on Monday, companies like BlackRock and Fidelity received a combined net inflow of $406 million on the same day.

Investors have allocated millions of dollars for Bitcoin spot exchange-traded funds (ETFs) recently introduced into the United States market earlier this month.

According to BitMEX Research, the research arm of the cryptocurrency exchange, all spot Bitcoin ETFs saw a total net inflow of $255 million between January 11, 2024, and January 29, 2024, 12 days after the SEC’s approval.

Reduced Sell Pressure

The influx has become a focal point in the evolving market dynamics, indicating a potential turning tide after massive ell-offs of Grayscale’s Bitcoin Trust (GBTC).

Following the passage of the spot ETF on January 11, the asset manager witnessed substantial outflows from its Bitcoin Trust, GBTC, last week, amounting to $3.9 billion, according to Bloomberg analyst James Seyffart.

This week, investors continued to pull out 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 recorded on January 24, indicating a noteworthy slowdown in the pace of sales. That same day, BitMEX Research said the company saw an outflow of $192 million.

However, these figures are relatively small compared to last week’s selloffs. Grayscale’s GBTC maintains a robust Assets Under Management (AUM) position with a figure of around $21.431 billion.

Bitcoin Breaks Above 50-Day SMA

While Grayscale’s GBTC saw outflows running in millions 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 saw an inflow of $208 million on January 29, 2024.

On January 25, JPMorgan analysts highlighted that the outflows from GBTC had contributed to a decline in Bitcoin’s price. Despite this, they indicated optimism, suggesting that the impact of these outflows is expected to diminish shortly.

As the market responds to these shifts, analysts have taken note of a notable deceleration in sales pressure, leaving a significant imprint on the price of BTC. Over the last seven days, the leading crypto asset has made an impressive 11.19% recovery and is now trading above $43,000, according to CoinMarketCap data.

Market experts believe the current level, above the 50-day simple moving average (SMA), is crucial for determining the strengthening of bullish or bearish momentum.

Emphasizing the significance of BTC’s move above the 50-day average, Alex Kuptsikevich, a senior market analyst at FXPro, told CoinDesk in an emailed statement that the BTC’s move above the 50-day average is important but not a yardstick for a solid bullish trend.

Bitcoin to Reach $170,000 After April’s Having

The Bitcoin move comes ahead of the long-awaited halving, scheduled to take place in April. Historically, the Bitcoin halving event is known to be accompanied by a meteoric rise in the value of crypto assets.

With the industry eagerly anticipating the BTC’s movement post-halving, Anthony Scaramucci, the founder of SkyBridge Capital, a financial alternative investment company, recently predicted that the crypto asset could reach as high as $170,000 after the event.

Scaramucci, who also serves as the managing partner for the firm, believes BTC can achieve the predicted outcome within 18 months after the upcoming halving event.


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