Bitcoin Rises as Outflows from Grayscale Bitcoin ETF Slow Down
Bitcoin saw an increase in price as investors found comfort in the possibility that outflows from the Grayscale Bitcoin ETF (GBTC) might be decreasing. The cryptocurrency’s price rose by nearly 6% to reach $42,131.57, resulting in positive weekly gains. Meanwhile, Ether experienced a 2% increase and was trading at $2,264.73, although it is still expected to see a 9% decline for the week.
Possible Slowdown in GBTC Outflows
According to Needham’s John Todaro, Thursday marked one of the lowest days for net outflows from GBTC and the third consecutive day of declining outflows. This suggests a potential slowdown in redemptions. JPMorgan strategist Nikolaos Panigirtzoglou also made a similar observation, stating that most of the profit-taking from GBTC has likely already occurred, reducing downward pressure on bitcoin.
Investor Rotation from Bitcoin to Ether
Investors may be reversing some of the rotation from bitcoin to ether that occurred after the approval of bitcoin ETFs. This comes after the Securities and Exchange Commission delayed its decision on two proposed spot ether ETFs from BlackRock and Grayscale. Earlier in the week, bitcoin experienced a significant drop but not as severe as anticipated. Bitcoin mining stocks, such as Riot Platforms and Marathon Digital, have outperformed the cryptocurrency.
Hot Take: Bitcoin Rebounds as GBTC Outflows Slow Down
Bitcoin’s price surged as investors took solace in the potential decrease in outflows from the Grayscale Bitcoin ETF. This positive development led to weekly gains for the cryptocurrency. Additionally, market experts believe that most of the profit-taking from GBTC has already occurred, suggesting a reduction in downward pressure on bitcoin. Investors may also be reversing their rotation from bitcoin to ether following delays in spot ether ETF approvals. Despite a correction earlier in the week, bitcoin’s long-term uptrend remains intact. Bitcoin mining stocks have also performed well, outperforming the cryptocurrency itself.
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