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Spot Bitcoin ETF Outflow Reached $55 Million Admist Market Panic

Key Points:

US Bitcoin ETFs outflow hits $55 million on a gloomy market day.
Despite market volatility, Hong Kong may approve ETFs investing in Bitcoin and Ethereum soon.
The crypto market remains uneasy following Bitcoin’s drop to $65,000, resulting in a $920 million liquidation.

In recent market movements, data from HODL15Capital revealed a notable shift in the US Bitcoin spot ETF landscape.

US Bitcoin ETF Outflow Recorded With GBTC Constituting Weight

Yesterday, the Bitcoin ETF outflow amounted to $55 million. Among the key players, Grayscale’s GBTC faced a significant net outflow of $166 million, while BlackRock’s IBIT saw a contrasting net inflow of $111 million. Fidelity’s FBTC remained neutral with a net inflow/outflow of zero.

The departure of assets from Grayscale Investment’s spot Bitcoin ETF peaked at $166 million, reflecting a trend of net outflows since its conversion to an ETF on January 11th. This exodus was somewhat anticipated, partly due to GBTC’s higher fee of 1.5% compared to competitors’ offerings.

Friday’s Bitcoin ETF outflow from GBTC was counterbalanced by significant inflows into BlackRock, amounting to $111.4 million. This shift indicates a potential investor preference for BlackRock’s ETF, possibly due to perceived advantages or evolving market dynamics.

Bitcoin Drop Triggers $920M Liquidation

While the Bitcoin ETF outflow isn’t particularly exceptional, market sentiment remains jittery following Bitcoin’s dip to $65,000, resulting in a crypto market liquidation of $920 million.

On a positive note, there are indications that Hong Kong might approve exchange-traded funds directly investing in Bitcoin and Ether as soon as Monday, signaling a potential milestone for mainstream cryptocurrency acceptance and investment.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.