Tag Archives: ETF

Bitcoin sees continued strength in ETF inflows

Posted on by
Reply

Bitcoin (BTC) ended the week at around $52,150, marking a notable 7.9% increase from the previous week’s closing price of around $48,300. The week started with solid price gains, with BTC reaching a high trading price of around $52,800 on Thursday, but it stabilized within the $51,000-$52,000 range over the weekend, ending at just above $52,000. The transaction was completed.

marked last week Bitcoin returns to trading above $50,000 For the first time in over two years, the BTC ETF Spot has shown strong momentum following approval. The last time BTC traded above $50,000 was in December 2021, just after hitting an all-time high of $69,000 in November of the same year. This period was retrospectively recognized as the beginning of a significant downward trend that continued throughout 2022, with prices falling to around $16,000 by the end of the year.

Market momentum continued to be driven by high demand for BTC ETF Spot. Over the last week, cumulative net inflows into BTC ETFs totaled approximately $2.3 billion, nearly double the $1.2 billion recorded the previous week and nearly half of the total net inflows since inception, which currently stands at approximately $5 billion. Occupied.

Net inflows have remained consistently positive for 16 consecutive business days since January 26th. However, outflows from the Grayscale Bitcoin ETF (GBTC) increased slightly last week, reaching approximately $625 million, compared to the cumulative outflows of $415 million recorded the previous week. % increase. This suggests that investors are actively taking profits following the recent surge in BTC prices.

Among the nine ETFs launched on January 11th, the BlackRock Bitcoin ETF (IBIT) remains in the lead with more than $5 billion in assets under management (AUM), and currently has a total of approximately $6.2 billion. It becomes. Fidelity BTC ETF (FBTC) follows in second place with approximately $4.5 billion in assets under management, while 21Shares & ARK Bitcoin ETF (ARKB) secures third place with approximately $1.5 billion in assets under management. Last week, a fourth ETF passed the $1 billion AUM milestone, with the Bitwise Bitcoin ETF (BITB) reaching approximately $1.2 billion in assets under management.

Trading volumes remain strong, with cumulative trading volume for BTC ETFs reaching approximately $9.6 billion last week, with average daily trading volume exceeding $1.9 billion. Since January 11th, the cumulative trading volume has reached $45.3 billion, with an average daily trading volume of approximately $1.7 billion. These numbers represent above-average trading volume for the week, highlighting the strong buying pressure and activity surrounding these ETFs.

Analyzing the macroeconomic situation reveals that Federal Open Market Committee (FOMC) Meeting There are 30 days left. Market expectations are that there is a 90% chance that interest rates will remain unchanged, with the first 25 bps rate cut still expected for some time from the end of the second quarter to the beginning of the third quarter of this year. This expectation increases expectations for more accommodative monetary policy from the Fed and increases the risk exposure that market participants are willing to take. This has contributed to solid momentum in risk assets such as BTC, cryptocurrencies, and stocks, which recently pushed the S&P 500 to new all-time highs.

Source: the-blockchain.com

SEC Approval of Spot Bitcoin ETF Leads to Increased Volatility in the Market – Blockchain News, Opinion, TV, Jobs

Posted on by
Reply

Bitcoin (BTC) closed last week at around $41,750, down 5.0% from the first week of the new year, to close at around $43,750. The price showed significant fluctuations, mainly influenced by the increased market dynamics due to the approval of the BTC Spot ETF. The week began with a strong uptrend in anticipation of approval on Monday, with prices rising 9.0% to nearly $47,000. BTC approached $48,000 on Tuesday, but the false news about confirmation encountered significant volatility, causing a drop below $45,000 before stabilizing near $46,000 overnight.

On Wednesday, the SEC granted approval for the BTC Spot ETF, leading to heightened volatility, especially on Thursday when ETF trading began. After soaring to around $49,000, BTC began a significant downtrend, especially on Friday, when the price fell by 7.7% to below $43,000. Prices gradually declined over the weekend, ultimately ending the week at around $41,750.

The launch of the BTC Spot ETF has increased market activity. An analysis of daily trading volume on centralized exchanges for the seven-day period from January 8th to 14th showed that daily trading volume reached nearly $50 billion, the highest since November 2022. The launch of ETFs has increased activity in the entire market, and not just in BTC.

From January 8th to 14th, BTC's daily trading volume was recorded at $17.8 billion, an increase of 26% from the $14.1 billion recorded the previous week. Ethereum (ETH) recorded a total daily trading volume of $7.7 billion during the same period, an 83% increase from the $4.2 billion recorded the previous week, indicating increased activity across the market.

The recent strength of the market compared to BTC is further substantiated by analyzing BTC's dominance in terms of market capitalization relative to the overall digital asset market. At the end of the week, BTC's share was 51.1%, down 5.4% from 54.0% the previous week.

BTC price trends, coupled with volume data and the performance of specific altcoins, indicate that it adheres to the typical “buy the rumor, sell the news” pattern associated with major market events. Market participants predicted the ETF's approval 90% of the time and adjusted their portfolios accordingly prior to SEC approval.

During Q4 2023, BTC showed significant strength, with the price increasing by 57% to around $42,300 from $27,000 at the end of Q3. As BTC reached almost $49,000 after approval, investors took profits on positions initiated at lower BTC price levels and transferred their capital to altcoins, as evidenced by its decline in dominance over the past week. began to be redistributed.

This pattern is common and does not indicate a failed ETF launch. In the first two days of trading, the 11BTC Spot ETF closed with approximately $1.4 billion in cumulative inflows, partially offset by $600 million in outflows from the Grayscale Bitcoin ETF (GBTC). Net inflows were approximately $800 million.

The GBTC outflow was facilitated by the fact that it was not a new product launch, but rather a conversion from an existing Bitcoin trust holding over 600,000 BTC. Grayscale has higher management fees (1.5%) compared to most of its competitors (0.2%/0.3%), leading some investors to withdraw from Grayscale and opt for more favorable management fees. May reinvest in other BTC ETFs with fees.

Source: the-blockchain.com