Bitcoin ETF shares rose broadly early Tuesday, on track for their fifth straight day of gains. Meanwhile, bitcoin rebounded about 9% over the past week after falling from two-year highs near $49,000 in early January. The Jan. 11 launch of spot bitcoin ETFs turned out to be, as some analysts predicted, a "sell-the-news" event. But the profit-taking appears to be subsiding. Meanwhile, Grayscale Bitcoin Trust shares are rebounding and making a bullish move off a key level of support.
Grayscale saw substantial outflows since its conversion to a spot bitcoin ETF, although the rate has decelerated. GBTC outflows slowed to $191.7 million on Monday from $255.1 million on Friday. Outgoing capital totaled $5.041.2 billion in the first 11 trading days following the bitcoin ETF launches. The nine newborn ETFs managed to offset those outflows, with gross inflows of $5.8 billion during that period, according to data from Bloomberg analyst James Seyffart.
Still, GBTC was by far the volume leader in trading through Monday, recording $13.2 billion in total trading volume. BlackRock's iShares Bitcoin Trust and the Fidelity Wise Origin Bitcoin Fund ranked next in terms of total volume during that period. IBIT saw $5.31 billion in trading volume through Monday while FBTC recorded $4.56 billion.
IBIT saw $2.17 billion in inflows during the first 11 days of bitcoin ETF trading, followed by Fidelity at about $1.93 billion.
Total trading volume across the newly-issued spot bitcoin ETFs, excluding Grayscale and Hashdex, reached $12.736 billion through Monday, according to Bloomberg data.
Despite the outflows, Grayscale holds $20.84 billion in assets, making it by far the largest bitcoin fund. IBIT ranks second with $2.19 billion in assets and Fidelity has $1.94 billion in assets as of Monday.
Cathie Wood's ARK 21Shares Bitcoin ETF recorded $1.42 billion in total trading volume through Monday with $596.4 million in inflows. ARKB holds $604.6 million in assets under management.
Bitcoin ETF Price Action
Bitcoin ETFs have trended higher the past week after an initial tumble post-launch.
GBTC on Friday rebounded above its 21-day exponential moving average and 10-day line after a bounce off its 50-day line on Jan. 23. GBTC stock rose slightly early Tuesday after surging 2.7% Monday.
Grayscale rallied 11.2% so far this year.
IBIT inched higher Tuesday morning and swung 2.8% higher Monday. IBIT shares have nearly recovered their post-launch declines.
FBTC ticked up less than 1% early Tuesday following its 2.9% advance Monday.
Bitcoin Price Action
Bitcoin hovered around $43,400 Tuesday morning, up nearly 3.4% over the past 24 hours, but fading from its overnight high of $43,833.
BTC had spiked to $49,000 Jan. 11 on the ETF launch — its highest level since December 2021. BTC then fell back into its early December 2023 level prior to the SEC announcement. The world's largest cryptocurrency rebounded about 157% in 2023. Bitcoin is up about 2.7% so far this year.
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