Key Points
- Bitcoin spot ETFs in the U.S. attracted substantial inflows on Tuesday, negating outflows from Grayscale Bitcoin Trust (GBTC).
- Despite the inflows, Bitcoin price remained around $70,000 due to selling pressure from long-term holders.
Tuesday witnessed a significant turnaround for Bitcoin (BTC) spot exchange-traded funds (ETFs) in the U.S., with substantial inflows following a lackluster performance the previous week.
SoSo Value data analysis revealed approximately 6,000 BTCs, valued at $418 million, were invested in these avenues on a net basis. This marked the most substantial wave of inflows since March 14.
Spot ETFs and GBTC Outflows
With this new influx, the total value of Bitcoins backing the spot ETFs reached $57.2 billion. This amount represents 4.20% of the cryptocurrency’s total market cap.
Fidelity’s spot ETF (FBTC) topped the inflows chart, accumulating Bitcoins worth $279.10 million. BlackRock’s IBIT fund followed with inflows of $162 million.
The combined inflows from the nine newly-launched ETFs helped offset $212 million in outflows from the Grayscale Bitcoin Trust (GBTC).
Last week saw GBTC outflows surpass inflows, resulting in five consecutive net negative days.
Interestingly, the accumulation by new ETFs encompassed all newly mined Bitcoins for the day, equivalent to Grayscale’s outflows, and an additional 5,092 coins from other sellers, according to venture capital firm HODL15Capital.
Bitcoin Price and Market Sentiment
Despite the strong wave of inflows, Bitcoin’s price remained around the $70,000 mark, suggesting significant selling was still occurring.
Much of this selling pressure could be attributed to long-term Bitcoin holders, who have been increasingly selling their holdings for profit.
While such events can hinder the asset’s rise, they also bring previously inactive coins into the liquid supply, potentially leading to increased demand and volatility.
Bitcoin’s Fear and Greed Index indicated a prevailing sentiment of “extreme greed” in the market. This could lead to sustained buying pressure in the coming days, potentially pushing Bitcoin’s price further north.
