Inflow Of Spot Bitcoin ETF Declines
This week, there was a decrease in interest for the spot Bitcoin ETFs, leading to low inflow volumes. Enthusiasm for the highly anticipated spot Bitcoin ETFs appears to be decreasing, with the lowest daily inflow of investments recorded on Wednesday since their inception on January 11. The declining investor interest in the ETFs is reflected in the on-chain data as Bitcoin’s trade near the $38K mark. The ETF’s debut initially triggered bullish market sentiments, but it didn’t send Bitcoin’s value beyond its resistance levels, instead prompting a ‘sell the news’ reaction that saw BTC prices dipping to newer lows this week.
Continued Bitcoin Accumulation by ETF Providers
Other ETF providers continue to accumulate more Bitcoin despite decreased interest in the spot Bitcoin ETFs. The volume of Bitcoin purchased by these ETFs (102K BTC) represents more than half of the total Bitcoin holdings accumulated by the major BTC investor MicroStrategy over the last three years. This prevented a change in market sentiment amid the continuous decline in volumes for spot Bitcoin ETFs.
GBTC Market Share Decline
It is noteworthy that the market share of GBTC has dropped from the peak of 64% to just 39% last week, while other ETF providers have not witnessed this decline as BlackRock’s market share surged to 29% from 18.7%. However, the declining investor interest in the ETFs is reflected in the on-chain data as Bitcoin’s trade near the $38K mark. The volume of Bitcoin purchased by these ETFs (102K BTC) represents more than half of the total Bitcoin holdings accumulated by the major BTC investor MicroStrategy over the last three years.
Hot Take
The Spot Bitcoin Exchange-Traded Fund (ETF) has wrapped up another week on US stock exchanges, continuing to develop positive sentiment among Bitcoin holders. Despite the ETF’s debut initially triggering bullish market sentiments, it didn’t send Bitcoin’s value beyond its resistance levels, instead prompting a ‘sell the news’ reaction that saw BTC prices dipping to newer lows this week.
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