Grayscale’s “reallocation” of Bitcoin (BTC) riches might be among the dominant negative catalysts that are preventing Bitcoin (BTC) from rallying in January. However, this trend is definitely losing steam.
Bitcoin ETF net inflow reached $14.8 million, BitMEX Research says
BitMEX Research, an analytics arm of top-tier crypto trading platform BitMEX, released its statistics of Bitcoin ETF liquidity flow. On Jan. 26, 2023, the lowest positive inflow since launch was registered: Competitors managed to erase Grayscale’s withdrawals.
Bitcoin Spot ETF Flow data
All data out for day 11. $14.8m net inflow in day 11 pic.twitter.com/OzbjcbIDci
— BitMEX Research (@BitMEXResearch) January 27, 2024
The largest inflows were registered by Fidelity’s, BlackRock’s and ARK Investments’ products: Their investors injected in BTC-based ETFs almost $220 million combined in just 24 hours.
Minor inflows were also indicated by Franklin Templeton, Valkyrie and VanEck’s Bitcoin-based products. In the same period, Grayscale’s portfolio saw an outflow equal to $255 million.
It should also be noted that Grayscale’s daily outflows are plummeting for the fourth session in a row. As such, the process of “conversion” of the OTC-traded Grayscale Bitcoin Trust (GBTC) into a full-fledged ETF might be nearing its ending.
As U.Today reported earlier today, the “GBTC FUD” might be the most powerful catalyst that pushes the Bitcoin (BTC) price down. Last week, it briefly dipped below $37,800 after a spectacular mid-January rally.
Bitcoin (BTC) sentiment returning to “Greed” zone
The commentators to the BitMEX Research publication are optimistic: They highlight that these pale numbers confirm that the recent Bitcoin (BTC) price upsurge is driven by retail, not by ETF managers.
As Bitcoin (BTC) recovered by 4.4% in the last 24 hours and attempts to conquer the $42,000 level again, traders’ optimism is also soaring.
Today, the Bitcoin Fear and Greed Index by Alternative left the “Neutral” zone and returned to “Greed”; as of press time, it sits at 55/100.
