Bitcoin ETFs accelerate in outflows, accumulating $15.4 million

Spot Bitcoin listed on Nasdaq (btc) Exchange-traded funds (ETFs) recorded inflows totaling $15.4 million on Monday, ending five days of outflows, according to provisional data. Published before Farside Investment Company.

Fidelity's FBTC led flows, raising $261.8 million, followed by BlackRock's IBIT, which raised $35.5 million. Other funds such as BITB, BTCO, EZBC and BRRR received between $11 million and $20 million each. Meanwhile, Grayscale's ETF (GBTC) continued to hemorrhage money, losing just over $350 million.

Last week, ETFs saw a cumulative outflow of $887.6 million, thanks to large withdrawals from GBTC.

Nearly a dozen spot ETFs made their US debut on January 11, allowing investors exposure to the leading cryptocurrency while bypassing the hassles of owning and storing digital assets. These ETFs invest directly in Bitcoin and eliminate the need to roll over positions, a key feature of the futures-based ETFs launched in October 2021.

Since spot ETFs began trading, Bitcoin has risen more than 50% to $70,750. Prices rose on Monday by just over 4%, briefly surpassing the $71,000 level.

Markus Thelen, founder of 10x Research, said that end-of-quarter inflows could be stronger than usual, pushing the price of the cryptocurrency to new highs.

“Bitcoin ETF flows magically turned around on Monday as Fidelity suddenly found $262 million in buyers, compared to $18 million, $3 million and $13 million over the previous three sessions. Tuesday inflows tended (30%) to cannibalize flows of Thursday (16%) and Friday (12%), while Monday and Wednesday (21% each) see their fair share of “20%” on weekdays. Newsletter.

“With the price of Bitcoin exceeding $70,000, we can imagine that flows on Tuesday could also be positive again. By the end of the quarter, flows could be stronger than usual,” Thelen added.

Thelen stressed that spot ETF flows and dollar-pegged stablecoin issuance (USDT) need to rise for Bitcoin to chart another strong move higher, otherwise the burden of the rally will fall on the shoulders of futures traders. Tether, the world's largest dollar-pegged stablecoin, is widely used as a funding currency in the cryptocurrency spot and derivatives markets.