Crypto News Today: Grayscale ETF Outflows Slow as IBIT Market Cap Hits $2 Billion

Bob Mason
Published: Jan 27, 2024, 04:56 UTC

BTC and broader crypto market continued to respond to BTC-spot ETF-related news. Downward trends in GBTC outflows fueled buyer demand on Friday.

Crypto News Today

In this article:

Key Insights:

  • BTC rallied 4.68% on Friday, ending the session at $41,853, with ETH gaining 2.21%.
  • BTC-spot ETF-related updates drove demand for BTC and the broader market.
  • On Saturday, US regulatory activity, lawmaker chatter, and BTC-spot ETF-related news need consideration.

Bitcoin-Spot ETF Market: GBTC Outflows Slow

BTC rallied 4.68% on Friday. Reversing a 0.27% loss from Thursday, BTC ended the day at $41,853. Significantly, BTC reached the $42,000 level for the first time in seven sessions.

BTC-spot ETF-related updates fueled buyer demand for BTC. On Friday, Bloomberg Intelligence ETF analyst James Seyffart shared day 10 trading volumes and flows, saying,

“Update for day 10 of the Bitcoin ETF Cointucky derby. Volumes and flows are both slowing down a bit. Another slight negative day on flows. Total net flows stand at +$744 million. $IBIT likely crosses 2 billion in assets today.”

Significantly, GBTC net outflows continued to trend downwards. Outflows fell from $429.3 million on trading day 9 to $394.1 million on trading day 10. The GBTC numbers countered a fourth consecutive day of net outflows for the BTC-spot ETF market.

Day 10 Flows and Trading Volumes
BTC-Spot ETF Volumes and Flows 270124

Later in the session, Seyffart confirmed that iShares Bitcoin Trust (IBIT) broke through the $2 billion barrier.

BTC and the broader market continued reacting to the ebbs and flows of the BTC-spot ETF market. Reaction to BTC-spot ETF-related news continued despite recent warnings from market experts. On Thursday, Seyffart warned ETFs are not the market, saying ETFs are a big slice of the pie but not the entire pie.

However, the trends were hard to ignore. In the early hours of the Saturday session, Seyffart shared GBTC outflows for trading day 11, saying,

“The trend is your friend? Lowest outflow day for GBTC since day 1 as an ETF.”

According to BitMEX Research, GBTC outflows declined to $255.1 million, with total outflows above $5 billion over 11 days of trading, equivalent to 6,000 BTC.

Amidst the increasing coverage of the BTC-spot ETF market, US regulators voiced concern about the lack of a legislative framework.

CFTC Chair Behnam Calls for Congress to Deliver Legislation to Regulate Cryptos

Commodity Futures Trading Commission (CFTC) Chair Rostin Behnam delivered a keynote speech at the ABA Business Law Section Derivatives & Futures Law Committee Winter Meeting.

Chair Behnam discussed the US crypto regulatory landscape on Friday, saying,

“Not a single federal regulator has been granted authority by Congress over the cash markets for digital assets.”

The CFTC Chair also discussed the recent approval of BTC-spot ETFs, saying,

“I fear that the regulatory approval of bitcoin ETPs introduces risk that, in spite of yellow flags, market participants, retail and institutional alike, may mistake the technical approval of a product—with actual regulatory oversight of the cash commodity digital assets.”

Two contrasting crypto regulatory bills have varying degrees of support on Capitol Hill. Senator Elizabeth Warren is pushing the Digital Asset Anti-Money Laundering Act. Senator Warren proposes to impose banking-style regulations on the US crypto market.

Senators Cynthia Lummis and Kirsten Gillibrand introduced the Responsible Financial Innovation Act. The Responsible Financial Innovation Act aims to fuel innovation while protecting US crypto investors.

Senator Warren plans to give the SEC authority over the US digital asset space. However, senators Lummis and Gillibrand aim for the CFTC to have greater authority.

Technical Analysis

Bitcoin Analysis

BTC hovered above the 50-day and 200-day EMAs, sending bullish price signals. Significantly, BTC broke above the 50-day EMA on Friday, signaling a possible breakout.

A BTC breakout from the 50-day EMA would give the bulls a run at the $42,968 resistance level and the $43,000 handle.

On Saturday, BTC-spot ETF-related chatter, US lawmaker scrutiny, and SEC activity need consideration.

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

The 14-Daily RSI reading, 48.56, suggests a BTC fall to the $39,861 support level before entering oversold territory.

BTC Daily Chart sends bullish price signals.
BTCUSD 270124 Daily Chart

Ethereum Analysis

ETH remained below the 50-day EMA while sitting above the 200-day EMA, sending bearish near-term but bullish longer-term price signals.

An ETH break above the $2,300 resistance level and the 50-day EMA would support a move toward the $2,457 resistance level. Selling pressure may intensify at the $2,300 resistance level. The 50-day EMA is confluent with the $2,300 resistance level.

Investors should monitor ETH-spot ETF-related chatter.

However, a fall through the $2,200 handle would give the bears a run at the $2,143 support level.

The 14-period Daily RSI at 43.54 indicates an ETH drop to the $2,143 support level before entering oversold territory.

ETH Daily Chart sends bearish near-term price signals.
ETHUSD 270124 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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