Bitcoin ETF

Bitcoin

Strong

<p>In a significant turn of events in the cryptocurrency market, Grayscale’s Bitcoin Trust (GBTC) has experienced a substantial outflow of $579 million in the initial days following the opening of redemptions, which was made possible after the U.S. Securities and Exchange Commission (<a href="https://www.cryptopolitan.com/sec-chairman-denies-system-breach/" rel="noopener noreferrer nofollow">SEC</a>) approved Bitcoin exchange-traded funds (ETFs).&nbsp;</p>
<p>In contrast, the newly launched spot Bitcoin ETFs have witnessed inflows totaling a remarkable $1.4 billion in just their first two trading sessions.</p>
<h2 class="wp-block-heading" id="strong-inflows-for-new-bitcoin-etfs">Strong Inflows for New Bitcoin ETFs</h2>
<p>Bloomberg ETF analyst Eric Balchunas reported that the newly introduced Bitcoin ETFs have had an impressive start, garnering significant attention from investors. These ETFs collectively attracted $1.4 billion in investments during their first two trading sessions.&nbsp;</p>
<p>This influx of funds into the<a href="https://www.cryptopolitan.com/spot-bitcoin-etfs-700k-individual-trans/" rel="noopener noreferrer nofollow"> ETFs</a> was accompanied by a staggering 500,000 individual trades, resulting in a substantial trading volume of $3.6 billion. It is worth noting that these numbers may undergo adjustments due to transactions pending accounting settlement.</p>
<p>After factoring in the $579 million outflow experienced by Grayscale’s GBTC, the net total inflows across all Bitcoin-related products amounted to $819 million. These figures align with earlier predictions made by ETF analyst James Seyffart, who estimated that Bitcoin ETFs could attract approximately $10 billion in their first year of operation.</p>
<h2 class="wp-block-heading" id="reasons-behind-gbtc-outflows">Reasons behind GBTC outflows</h2>
<p>The outflows from Grayscale’s GBTC can be attributed to holders converting their shares. This activity became possible after the SEC granted approval for Bitcoin ETFs through a ruling change.&nbsp;</p>
<p>Anthony Scaramucci, founder of SkyBridge Capital, noted that some GBTC investors opt to book losses and transition to lower-fee options available through the newly established ETFs.</p>
<p>Grayscale’s <a href="https://twitter.com/EricBalchunas/status/1746145426229669972" rel="noopener noreferrer nofollow" target="_blank">GBTC</a>, which has operated since 2013, currently manages over $27 billion worth of Bitcoin assets. However, only on January 1, 2024, did GBTC shares become redeemable for actual Bitcoin, marking a significant development for investors in the trust.</p>
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   <p lang="en" dir="ltr">LATEST: With two days in the books, the Nine Newborns have taken in +$1.4b in new cash, overwhelming <a href="https://twitter.com/search?q=%24GBTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">$GBTC</a>'s -$579m of outflows for net total of +$819m. <a href="https://twitter.com/search?q=%24IBIT&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">$IBIT</a> now leading pack w/ half a bil, Fidelity close second tho. The newborns' $3.6b in trading volume on 500k indiv trades… <a href="https://t.co/b7U5DjENaw" rel="noopener noreferrer nofollow" target="_blank">pic.twitter.com/b7U5DjENaw</a></p>— Eric Balchunas (@EricBalchunas) <a href="https://twitter.com/EricBalchunas/status/1746145426229669972?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">January 13, 2024</a>
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<p>Among the newly launched Bitcoin ETFs, BlackRock’s iShares Bitcoin Trust (IBIT) led the way with total flows of $497.7 million. Fidelity Advantage Bitcoin ETF (FBTC) followed closely behind, amassing $422.3 million in investments, while Bitwise (BITB) attracted $237.9 million.</p>
<h2 class="wp-block-heading" id="bitcoin-price-movement-following-etf-approval">Bitcoin Price Movement Following ETF Approval</h2>
<p>Following a substantial 75% rally in the 90 days leading up to the approval of Bitcoin ETFs, the price of Bitcoin experienced a 6.8% decline between January 11 and January 12. This decline proves the cryptocurrency market often witnesses a “sell-the-news” style event following significant regulatory approvals. At the time of writing, Bitcoin is trading at $42,856, representing a 0.77% decline over the past 24 hours.</p>

Grayscale’s GBTC sees outflows as new Bitcoin ETFs attract inflows

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