Is the negative outflow of ETF funds over? BTC on track to gain for fifth consecutive month

Source: Golden Ten Data

According to cryptocurrency investment company CoinShares, cryptocurrency prices have plummeted recently due to outflows from the Grayscale Bitcoin Trust Fund (GBTC). This may also be the reason for the outflow of funds from digital asset products in Europe and Canada. Fortunately, outflows from the fund have slowed, offset by inflows from the Fidelity Spot Bitcoin ETF (FTTC).

CoinShares explained in a report on January 28 that GBTC experienced a total outflow of US$5 billion, which has led to the recent decline in digital currency prices and may trigger correlations in other regions. There were further outflows from the product.

CoinShares data shows that during the trading week from January 22 to 26, digital asset products in Switzerland and Germany were the hardest hit, with outflows of US$59.8 million and US$31.7 million respectively. Digital asset products from Brazil were the only major inflows last week, with inflows of $10.3 million. Looking at the entire month, Canadian digital asset products had the largest outflow this month, reaching US$209.8 million, followed by products from Germany and Sweden, with US$124.5 million and US$34.2 million respectively.

Meanwhile, CoinShares pointed out that U.S. spot Bitcoin ETF trading saw nearly $500 million in outflows in its second full week. While the nine “new” spot Bitcoin ETFs saw nearly $1.8 billion in inflows, this was not enough to make up for the over $2.2 billion in outflows in a single week after GBTC was converted to an ETF. However, CoinShares noted thatoutflows from the fund began to decrease. The latest GBTC outflow is down nearly 25% from $255 million on January 26, and down 70% from the peak single-day outflow of $641 million on January 22. JPMorgan analysts pointed out that GBTC outflows have put downward price pressure on Bitcoin, but added that "it should be basically behind us."

In addition, it is reported that on January 29, the single-day capital inflow of Fidelity Spot Bitcoin ETF reached 208 million U.S. dollars, which for the first time exceeded the capital outflow of GBTC except on the day of launch. quantity. At the same time, according to data shared by Bloomberg ETF analyst James Seyffart, the total trading volume of 9 new spot Bitcoin ETFs in the United States reached US$994.1 million on January 29, which was almost the US$570 million GBTC trading volume. double.

Against this backdrop, Bitcoin is on track to post its fifth straight monthly gain, which would be the coin’s longest winning streak since a rally fueled by easy monetary policy during the pandemic. A five-month streak of gains would be the longest since a six-month streak from October 2020 to March 2021, according to data compiled by Bloomberg. The coin hit an all-time high of nearly $69,000 in November 2021.

Data compiled by Bloomberg show that 10 spot Bitcoin ETFs have attracted a total of $817 million in net funds to date,making them the most successful ETFs in history in terms of trading and flow metrics. .