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Bitcoin News Today: GBTC Net Outflows and Trading Volumes Impact BTC

By:
Bob Mason
Published: Jan 31, 2024, 03:48 GMT+00:00

BTC-spot ETF market data left BTC in negative territory on Tuesday. However, renewed hopes for an ETH-spot ETF market contributed to session gains.

Bitcoin News Today

In this article:

Key Insights:

  • BTC declined by 0.82% on Tuesday, ending the session at $42,977.
  • BTC-spot ETF-related updates contributed to the loss.
  • On Wednesday, SEC activity and BTC-spot ETF-related updates warrant investor attention.

BTC-Spot ETF Outflows Leave Bitcoin in Negative Territory

BTC declined by 0.82% on Tuesday. Partially reversing a 3.02% gain from Monday, BTC ended the session at $42,977.

BTC-spot ETF market flow and volume numbers left BTC in negative territory. On Tuesday, Bloomberg Intelligence ETF analyst James Seyffart shared total flows and trading volumes after 12 days of trading. However, trading volumes for day 13 likely garnered more investor interest.

Net inflows totaled $1,015 million after 12 days of trading, with trading volumes of $27,124.3 million. While net inflows were a positive BTC price signal, recent flows have been mixed.

On Monday, the BTC-spot ETF market recorded net inflows for the second consecutive session. Grayscale outflows and trading volumes are leading indicators of daily BTC-spot ETF Market flow and volume trends.

A rebound in GBTC trading volumes on Tuesday increased the chances of net outflows on day 13 of trading. However, iShares Bitcoin Trust (IBIT) and Fidelity Wise Origin Bitcoin Fund (FBTC) saw trading volumes within the range of GBTC that could counter GBTC outflows.

According to BitMEX Research, GBTC outflows totaled $220 million on Day 13, up from $191.7 million on Day 12. The upswing in GBTC trading volumes and net outflows likely contributed to the Tuesday loss and early losses on Wednesday.

GBTC trading volumes top the table on Day 13.
BTC-spot ETF Market Trading Volumes – Day 13

The BitMEX Research Cumulative Flow Chart gives a graphical view of the first 12 days of trading.

Cumulative Chart Highlights GBTC, IBIT, and FBTC influence.
BTC Spot ETF Cumulative Flow 310124

The investor focus remains on the nine. However, the Cboe withdrew its application for Global X Bitcoin Trust on Tuesday. Seyffart had this to say about the withdrawal,

“Official withdrawal request for GlobalX ETFs’ Bitcoin ETF. This is not surprising because we have known they were out of the race since at least early December but now it’s official.”

Away from the BTC-spot ETF market, ETH-spot ETF chatter also garnered investor interest.

Standard Chartered Bank Bets on ETH-Spot ETF Approvals in May

On Tuesday, Standard Chartered Bank (SCB) announced the SEC will likely approve ETH-spot ETFs in May. SCB referenced the VanEck and Ark 21Shares ETF applications, with SEC final deadlines of May 23 and 24, respectively.

Significantly, SCB forecasted ETH could hit $4,000 on approval of the ETH-spot ETFs.

The optimism toward an ETH-spot ETF market comes despite a previous warning from SEC Chair Gary Gensler. Pouring cold water on the prospects of a crypto-spot ETF market, SEC Chair Gensler warned,

“Importantly, today’s Commission action is cabined to ETPs holding one non-security commodity, bitcoin. It should in no way signal the Commission’s willingness to approve listing standards for crypto asset securities.”

Nonetheless, SCB’s projected timeline aligns with James Seyffart’s previous forecast. Last week, Seyffart reacted to news of the SEC delaying the decision on the BlackRock (BLK) ETH-spot ETF application, saying,

“Spot Ethereum ETF Delays will continue to happen sporadically over the next few months. Next data that matters is May 23rd.”

On Tuesday, ETH bucked the broader market trend, gaining 1.14% to end the session at $2,344.

Technical Analysis

Bitcoin Analysis

BTC held above the 50-day and 200-day EMAs, confirming bullish price trends.

A BTC move through the $42,968 resistance level would give the bulls a run at the $44,690 resistance level.

On Wednesday, BTC-spot ETF market net flows for Day 13 and trading volumes for Day 14 need consideration.

However, a fall through the 50-day EMA would bring the $39,861 support level into play.

The 14-Daily RSI reading, 52.88, suggests a BTC break above the $44,690 resistance level before entering overbought territory.

BTC Daily Chart sends bullish price signals.
BTCUSD 310124 Daily Chart

Ethereum Analysis

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

An ETH break above the $2,350 handle would bring the $2,457 resistance level into play.

Investors continue tracking ETH-spot ETF-related updates.

However, a fall through the 50-day EMA and $2,300 support level would give the bears a run at the $2,143 support level.

The 14-period Daily RSI at 49.06 indicates an ETH drop to the $2,143 support level before entering oversold territory.

ETH Daily Chart sends bullish price signals.
ETHUSD 310124 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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