US Bitcoin ETFs Garner 255 Million Dollars in Investments

Crypto News- Investors have recently committed millions of dollars to newly introduced Bitcoin ETFs Garner exchange-traded funds (ETFs) in the United States. According to insights from BitMEX Research, the cryptocurrency exchange’s research arm, the collective net inflow into all spot Bitcoin ETFs amounted to $255 million between January 11 and January 29, marking 12 days post-SEC approval. This surge has become a focal point in market dynamics, signaling a potential shift after significant sell-offs in Grayscale’s Bitcoin Trust (GBTC).

Following the approval of the spot ETF on January 11, Grayscale observed substantial outflows from its Bitcoin Trust, GBTC, totaling $3.9 billion last week, as reported by Bloomberg analyst James Seyffart. The trend continued this week, with investors withdrawing a total of 120,500 Bitcoin (BTC), equivalent to approximately $5.508 billion.

US Bitcoin ETFs Garner 255 Million Dollars in Investments

On Monday, SoSoValue data revealed a net outflow of $191 million, a notable decrease from the $515 million recorded on January 24, suggesting a slowdown in sales. BitMEX Research reported an outflow of $192 million on the same day. Despite these figures, they remain modest compared to the previous week’s sell-offs, with GBTC maintaining a robust Assets Under Management (AUM) position at around $21.431 billion.

While Grayscale experienced outflows, companies like BlackRock and Fidelity Investments saw a combined net inflow of $406 million on the same day. Farside Investors data indicated Fidelity’s FBTC received an inflow of $208 million on January 29, 2024.

US Bitcoin ETFs Attract 255 Million Dollars in 12 Days: Impact on Grayscale, Market Dynamics, and Bullish Signals

JPMorgan analysts on January 25 noted that GBTC outflows contributed to a decline in Bitcoin’s price. However, they expressed optimism, expecting the impact of these outflows to diminish soon.

Amidst these market shifts, analysts highlighted a noticeable deceleration in sales pressure, leaving a significant impact on BTC’s price. Over the last seven days, the leading cryptocurrency has staged an impressive 11.19% recovery, now trading above $43,000, according to CoinMarketCap data.

The current level, above the 50-day simple moving average (SMA), is seen as crucial in determining bullish or bearish momentum. Senior market analyst Alex Kuptsikevich at FXPro emphasized the significance of BTC’s move above the 50-day average, stating that while important, it doesn’t necessarily signal a solid bullish trend.

This Bitcoin movement precedes the highly anticipated halving scheduled for April, historically associated with a meteoric rise in crypto asset values. Anthony Scaramucci, founder of SkyBridge Capital, predicts BTC could reach as high as $170,000 within 18 months post-halving, underscoring the industry’s excitement about the event.