The “reallocation” of Bitcoin (BTC) wealth by Grayscale may be one of the main negative triggers keeping the price of BTC from rising in January. This tendency is undoubtedly waning, though.
Bitcoin ETF net inflow reached $14.8 million, BitMEX Research says
BitMEX Research, the analytical division of the premier cryptocurrency trading platform BitMEX, has made available its Bitcoin ETF liquidity flow statistics. The lowest positive inflow since debut was recorded on January 26, 2023, when rivals successfully eliminated Grayscale’s withdrawals.
https://x.com/BitMEXResearch/status/1751145871742324768?s=20
The products from Fidelity, BlackRock, and ARK Investments had the biggest inflows; in just one day, these investors invested about $220 million in BTC-based exchange-traded funds (ETFs).
The Bitcoin-based products from VanEck, Valkyrie, and Franklin Templeton also showed some slight inflows. A $255 million withdrawal was made from Grayscale’s portfolio over the same time period.
It should be mentioned that Grayscale is seeing a sharp decline in daily outflows for the fourth consecutive session. Therefore, it’s possible that the “conversion” of the OTC-traded Grayscale Bitcoin Trust (GBTC) into a fully functional ETF is almost complete.
As previously reported by U.Today, the “GBTC FUD” may be the most potent depressant for the price of Bitcoin (BTC). It saw a short decline below $37,800 last week following an incredible mid-January surge.
Bitcoin (BTC) sentiment returning to “Greed” zone
The BitMEX Research publication’s commenters are upbeat: They point out that these low figures demonstrate that regular investors, not ETF managers, are the ones driving the current increase in the price of Bitcoin (BTC).
With Bitcoin (BTC) up 4.4% in the past day and looking to retake the $42,000 mark, traders’ confidence is also surging.
The Bitcoin Fear and Greed Index by Alternative moved back into the “Greed” category today, leaving the “Neutral” zone behind; as of this writing, it is 55/100.
