BlackRock Bitcoin ETF Surpasses 2B Holdings As GBTC Drops 50%
Bitcoin (BTC) stuck around $42,000 on Wall Street on January 29 as new exchange-traded funds (ETFs) began to emerge.
Bitcoin ETFs comfortably accept GBTC inflows.
The data shows that BTC's price action has continued to pull back from the $42,800 local high seen over the weekend.
Outflows from Greyscale Bitcoin Trust (GBTC), the largest new weekly cryptocurrency, have experienced notable setbacks in the new week.
These totaled $360 million for the day, according to data available at the time of writing – a sharp drop from the previous daily total and about 50% of the peak daily flow rate.
Today's #Bitcoin sent in $GBTC/Grayscale is worth ~8.6K$BTC or ~$360M.
Another drop from last Friday and about half of what was sent before.
I think it is safe to assume that flows (on both sides) will gradually cool from here. pic.twitter.com/2gtai2dYlK
— Daan Crypto Trades (@DaanCrypto) January 29, 2024
That day, Bloomberg Intelligence analyst James Seifert also released more than $5 billion after converting GBTC to ETFs. On January 26, the most recent full day of trading, the Bitcoin ETF posted a net gain of $759 million despite a total windfall of GBTC.
Update after Friday (11 days) for the #Bitcoin ETF Cointucky Derby. 5 billion from $GBTC. Newborn 9 is still making up for those inflows with $5.8 billion in total inflows. It gives us a net income of $759 million. Volume continues to slow. pic.twitter.com/QTJqqI4aoA
— James Seyff (@JSeyff) January 29, 2024
According to data from asset manager BlackRock, meanwhile, its iShares Bitcoin Trust (iBIT) ETF held more than 52,000 BTC worth more than $2 billion on the day.
The numbers have been widely circulated on social media, with prominent investor Rajat Soni highlighting the volume of indirect purchases and Bitcoin's daily emissions.
“Currently, they are only mining 900 BTC per day. BlackRock customers alone buy 2-5x the total BTC daily production,” he calculated.
The FOMC holds the key to capturing the reaction of the crypto market
Ahead of a frenetic macro week, BTC price action has market participants cautiously optimistic but open to volatility.
RELATED: BTC Price Opens Year to FOMC — 5 Things to Know in Bitcoin This Week
Risk assets were broadly supported ahead of the US Federal Reserve's next decision on interest rates on January 31, marking the highlight of the week.
“The market currently gives a ~97% chance of keeping the Fed on hold at this meeting and a 46% chance of a cut at the March meeting,” financial analyst Tedtalksmacro wrote in a weekend post on X (formerly Twitter) based on data from the CME Group's FedWatch Tool.
He added that he expects this week's Federal Open Market Committee, or FOMC, meeting to lay the groundwork for a rate hike starting in March.
“Overall, I expect this meeting to shape the March decision. And that could move the markets quickly depending on what comes out of Powell's mouth,” Fed Chairman Jerome Powell said in a press release following the rate announcement.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
