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Bitcoin sees continued strength in ETF inflows

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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

Investment inflows into BTC spot ETFs continue as BTC volatility shrinks – Blockchain updates, analysis, TV, and job opportunities

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Mateo Greco, Research Analyst, Listed Digital Assets and FinTech Investment Business Finekia International (CSE:FNQ)

Bitcoin (BTC) ended the week at around $41,600, down just 0.4% from the previous week's closing price of around $41,750. Prices have become less volatile and more stable following the SEC's approval of the ETF compared to the previous week, putting an end to speculation on the issue.

The introduction of the new BTC Spot ETF has attracted funds from traditional finance to the digital asset market. The 11 spot ETFs have collectively attracted approximately $1.15 billion in cumulative inflows since inception. Leading the pack is the BlackRock Spot ETF with about $1.4 billion in assets under management (AUM), followed closely by the Fidelity Spot ETF with about $1.26 billion in assets under management.

This inflow was partially offset by the fact that one of the 11 spot ETFs launched was Grayscale Bitcoin Trust (GBTC). GBTC is not a new product; it has been traded in trust since 2015, but was converted to an ETF. The product has experienced significant outflows of approximately $2.81 billion since the conversion, with total inflows for the 11BTC Spot ETF decreasing from approximately $3.96 billion to $1.15 billion.

At the time of the conversion, GBTC held approximately 620,000 BTC, which has now decreased to approximately 552,000 BTC. The large outflow can be attributed to two main factors. First, prior to the conversion, due to the structure of the product, GBTC customers were restricted from redeeming their shares and could only sell them on the secondary market. This forced many customers to hold positions for years without an exit option unless they were willing to sell at a deep discount on the secondary market. Second, the high management fee charged by Grayscale (1.5%) compared to most of its competitors (0.2%/0.3%) has led some investors to choose between cashing out their profits or offering a more cost-effective option. I withdrew my investment from Grayscale to reinvest in a high-performing ETF.

BTC spot ETFs recorded strong activity with high trading volumes. Since their launch, the cumulative trading volume of the 11 spot ETFs has reached approximately $16.6 billion in six trading days, or an average daily trading volume of approximately $2.77 billion. As expected, GBTC recorded the highest trading volume given the large amount of BTC being stored and the dynamic activity related to the conversion of trusts into ETFs.

With the successful launch of the BTC Spot ETF, market participants and analysts are now focusing on the potential for the ETF to include a variety of digital assets. Analysts predict an Ethereum (ETH) spot ETF has a greater than 70% chance of approval this year. This expectation is reinforced by analyzing the price trend of ETH. Immediately after the approval of the BTC Spot ETF, funds were transferred from BTC to ETH. ETH rose 17% versus BTC and 11% in dollar terms during the week of approval. This indicates that market participants are anticipating the approval of the ETH Spot ETF following the green light for the BTC Spot ETF and are adjusting their positions accordingly.

Source: the-blockchain.com