9 months ago
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According to data from BitMEX Research, GBTC witnessed a decrease in outflows, with $394.1 million on January 25, down from $429.3 million on Wednesday and $515.3 million on Tuesday.
Bitcoin (BTC) experienced a notable rebound, surpassing the $41,000 mark, amid slowing outflows for Grayscale Bitcoin Trust (GBTC) and varied performances across new spot Bitcoin ETFs. Despite this recovery, the crypto market remains marked by volatility, with liquidations reaching over $110 million in the past 24 hours.
Grayscale Outflows and Bitcoin ETF Performance
According to data from BitMEX Research, GBTC witnessed a decrease in outflows, with $394.1 million on January 25, down from $429.3 million on Wednesday and $515.3 million on Tuesday. Although the outflows remain high, this marks the second-lowest figure since the spot Bitcoin ETFs’ launch on January 11.
The total net outflow for Bitcoin spot ETFs as of January 25 was $79.6 billion, primarily driven by GBTC’s $394 million single-day net outflow. However, the nine newly launched spot bitcoin ETFs, including BlackRock (IBIT), Fidelity Investments (FBTC), Bitwise (BITB), Ark 21Shares (ARKB), Invesco (BTCO), VanEck (HODL), Valkyrie (BRRR), Franklin Templeton (EZBC) and WisdomTree (BTCW) have not recorded outflows so far.
IBIT recorded the largest inflows on the given day with $170.7 million, FBTC generated $101 million, and BITB secured the third position with $20 million. Despite these positive inflows, the total inflows from the nine ETFs were not sufficient to offset GBTC outflows, resulting in a net outflow of nearly $80 million.
Since their launch, spot Bitcoin ETFs have attracted net inflows of $744.6 million, with the nine new entrants accumulating $5.53 billion in capital injection, while GBTC registered total outflows of $4.79 billion.
Bitcoin’s Recent Price Movement
Bitcoin’s current trading price stands at $41,314, reflecting a 3.29% increase in the past 24 hours. However, the cryptocurrency experienced a recent dip of over 20% from its high of around $49,000 on the day spot Bitcoin ETFs were launched, reaching a low of $38,600 on Jan. 23.
The recent market volatility resulted in notable liquidations, predominantly affecting short positions, leading to a loss of over $66 million. Long positions contributed approximately $44 million to the total liquidations. The current annualized Bitcoin volatility, as reported by The Block’s data dashboard, is 53.95%, showcasing an increase from around 42% at the beginning of January.
JPMorgan analysts, led by Nikolaos Panigirtzoglou, expect limited further downside for Bitcoin, attributing the recent decline in its price to profit-taking in GBTC, which they believe is now largely phased out. However, they caution that ongoing outflows could occur if GBTC’s 1.5% fee isn’t reduced soon, potentially causing the fund to lose market share to competitors with lower fees.
Also, Chris Burniske, Partner at Placeholder VC, expresses skepticism, speculating that Bitcoin may fall to “at least” the $30,000 to $36,000 price range before finding a local bottom. While Burniske believes in the long-term robustness of the trend, he warns of ongoing volatility and potential challenges on macroeconomic levels.
While the impact of spot Bitcoin ETF remains high in the ecosystem, the forthcoming Bitcoin Halving event is set to start shaping sentiment soon.
