Bitcoin News Today: BTC-Spot ETF Inflows Trend Downwards

Bob Mason
Published: Feb 7, 2024, 03:13 GMT+00:00

The BTC-spot ETF market remains wholly reliant upon the iShares Bitcoin Trust and Fidelity Wise Origin Bitcoin Fund after 17 days of trading.

Bitcoin News Today

In this article:

Key Insights:

  • BTC rose by 0.91% on Tuesday, ending the session at $43,065.
  • Net inflows across the BTC-spot ETF market trended lower on Tuesday.
  • On Wednesday, US lawmakers, SEC chatter, and BTC-spot ETF-related news need consideration.

On Tuesday, the flows and volumes for Monday highlighted a negative trend for BTC and the broader crypto market. Bloomberg Intelligence ETF Analyst James Seyffart shared the BTC-spot ETF market numbers for Day 17 of trading.

Significantly, only three BTC-spot ETFs registered net inflows on Monday. iShares Bitcoin Trust (IBIT) led the way, with net inflows of $137.3 million versus $38.0 million for Fidelity Wise Origin Bitcoin Fund (FBTC).

Recent inflow numbers for iShares Bitcoin Trust suggest a successful start to the BlackRock (BLK) advertising campaign,

Nonetheless, the latest figures question whether all nine can continue beyond the first year. IBIT has accumulated total inflows of $3,194 million, while FBTC has seen $2,638 million over the 17 days of trading. In contrast, WisdomTree Bitcoin Fund saw inflows of only $11.1 million.

BTC-spot ETF flows and volumes
BTC-Spot ETF Volumes 050224

Key takeaways from Day 17 of trading:

    • The BTC-spot ETF market extended the net inflow winning streak to seven sessions.
    • Grayscale Bitcoin Trust (GBTC) net outflows declined for the fifth consecutive session.
    • Excluding GBTC, IBIT led the way over 17 days in trading volume and net inflows.

The latest US Exchange-Traded Fund rankings by year-to-date (TYD) flows highlighted the ongoing success of IBIT. IBIT ranked fifth in YTD flows.

BitMEX Research shared the latest data showing GBTC net outflows, which decreased from $108 million to $72.7 million on February 6.

BTC price action likely contributed to the downward trend in net inflows. BTC last revisited the $44,000 handle on January 12, the day after the SEC approved the nine recently launched spot-BTC ETFs.

However, international crypto funds remained a victim of the newly launched BTC-spot ETF market.

International Crypto Fund Investors Migrate to BTC-Spot ETFs

On Tuesday, Bloomberg Intelligence Senior ETF Analyst Eric Balchunas shared a new BTC-spot ETF milestone, saying,

“Got our first holder reported for IBIT, it’s a Canadian asset manager called Redwood, looks like it sold the local Purpose Bitcoin ETF which is >1% fee and bought the US-based IBIT which is free till first $5b and 25bps thereafter. Great cost migration hitting crypto funds.”

Fee differentials between BTC-spot ETFs and international crypto funds continue driving investor migration from international crypto funds to ETFs.

Technical Analysis

Bitcoin Analysis

BTC remained above the 50-day and 200-day EMAs, sending bullish price signals.

A BTC break above the $43,500 handle would give the bulls a run at the $44,690 resistance level.

On Wednesday, investors should consider US lawmakers’ discussions, SEC activity, and news related to BTC-spot ETFs.

However, a break below the $42,968 support level and the 50-day EMA would bring the $39,861 support level into play.

The 14-Daily RSI reading, 53.63, indicates a BTC return to the $44,690 resistance level before entering overbought territory.

BTC Daily Chart sends bullish price signals.
BTCUSD 070224 Daily Chart

Ethereum Analysis

ETH remained well above the 50-day and 200-day EMAs, affirming bullish price signals.

An ETH return to the $2,400 handle would bring the $2,457 resistance level into play.

ETH-spot ETF-related updates need tracking.

However, an ETH fall through the $2,350 handle would give the bears a run at the 50-day EMA and $2,300 support level.

The 14-period Daily RSI at 54.39 suggests an ETH return to the $2,457 resistance level before entering overbought territory.

ETH Daily Chart sends bullish price signals.
ETHUSD 070224 Daily Chart

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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