Key Insights:
- On Monday, Bitcoin’s price climbed to almost $44,000 as the 10 spot Bitcoin ETFs experienced their first weekly net inflows in a week.
- Despite net outflows from the Grayscale Bitcoin Trust (GBTC), ETF issuers collectively added over 4,200 Bitcoins, valued at approximately $183 million.
- Since their approval on January 10th, the new ETFs have witnessed total net inflows surpassing $1 billion, leading to a 10% increase in Bitcoin’s value.
On Monday, the price of Bitcoin made a remarkable recovery, reaching close to $44,000, thanks to a resurgence in investor interest in Bitcoin Exchange-Traded Funds (ETFs). This positive momentum came after continuous net outflows, primarily from the Grayscale Bitcoin Trust (GBTC).
During the start of the week, ETF issuers managed to add more than 4,200 Bitcoins to their collective holdings, translating to approximately $183 million. This influx of new capital injected renewed confidence into the cryptocurrency market, pushing the price of Bitcoin up by around 10% compared to the previous week.
Notably, the outflows from GBTC, which had been substantial since the launch of the ETFs, showed signs of slowing down. In the first six days following the ETFs’ approval on January 10th, an average of $470 million exited GBTC. However, this Monday, that number had decreased to $192 million, according to research firm BitMEX.
Bitcoin ETF Flow – Day 12
GBTC flow data out
$192m outflow
— BitMEX Research (@BitMEXResearch) January 29, 2024
One of the most remarkable aspects of this development is that, in just 12 trading days since their approval, the new Bitcoin ETFs have collectively attracted total net inflows exceeding $1 billion. This influx of funds has played a pivotal role in boosting Bitcoin’s value and reinvigorating investor interest in the cryptocurrency market.
As of this writing, BTC is exchanging hands at $42,850, down by over 1% in the past 24 hours. The bears have been ruling BTC’s market today as they pushed the price down from a high of $43,730 to a daily low of $42,350, creating support. Since then, BTC has been trading slightly above this level as the bears hold their ground tight. The market cap and daily trading volume have also decreased today, dropping to $22 billion and $836 billion, respectively.
In summary, Bitcoin’s price has rebounded significantly, reaching almost $44,000, fueled by a resurgence in investor interest and net inflows into Bitcoin ETFs. This substantial influx of funds marks a significant milestone in the cryptocurrency market and underscores the growing interest in Bitcoin investment through ETFs.
