At the Wall Street opening on January 29, Bitcoin BTC ticked down $43,384 and held onto $42,000 as new exchange-traded fund (ETF) outflows started.
GBTC Outflows Are Easily Absorbed By Bitcoin ETFs
Data showed Bitcoin ETF price activity continuing to drop from local highs of $42,800 reached over the weekend. Following a positive weekly close, the biggest cryptocurrency encountered typical obstacles this week as withdrawals from the Grayscale Bitcoin Trust (GBTC) resumed. According to statistics available at the time of writing, these came to $360 million for the day, which is around 50% of peak daily outflows and a further decline from the previous day’s total. James Seyffart, an analyst with Bloomberg Intelligence, also mentioned that day that more than $5 billion had departed GBTC since it was converted to a bitcoin ETF. Despite the GBTC headwind, spot Bitcoin ETFs witnessed net inflows of $759 million overall on January 26, the most recent full day of trading.
Meanwhile, the iShares Bitcoin Trust (iBIT) ETF had more than 52,000 BTC worth more than $2 billion on the day, according to statistics from asset management BlackRock. Social media users quickly shared the figures, with well-known investor Rajat Soni emphasizing how much-suggested purchase volume there is in comparison to Bitcoin ETF’s daily emissions. As of right present, only 900 Bitcoin are distributed each day. He calculated that only Blackrock customers are purchasing two to five times the daily production of Bitcoin. The price behavior of BTC left market players cautiously hopeful but exposed to volatility ahead of a hectic macro week. The week’s high point occurred when risk assets widely anticipated the US Federal Reserve’s next interest rate announcement, which is scheduled for January 31.