US Bitcoin ETF Ends Week With $149.4M Outflow, Will It Impact BTC Rally?

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Discussions continue to swirl around Bitcoin ETFs, a year since their approval. However, recent outflows on Friday have sparked concerns. This is the second consecutive weekday with BlackRock’s IBIT seeing significant outflow, leading the exodus.

US Bitcoin ETF Records Outflow

As a researcher, I conclude this week’s findings based on a report by Farside Investors, revealing a significant outflow from the US Bitcoin ETF. Specifically, the total withdrawal amounts to approximately $149.4 million. Notably, BlackRock’s IBIT is responsible for the largest portion of these outflows, accounting for $183.6 million. Additionally, Bitwise’s BITB also reported an outflow of about $1.6 million.

While some entities failed to disclose their figures, others expressed optimistic views. Among these are Fidelity’s FBTC, Ark’s ARKB, and Grayscale’s GBTC. Their respective inflows were $16.6 million, $5.7 million, and $13.5 million. It remains to be determined if the interest in Spot Bitcoin ETFs will continue at its current pace or shift in the coming days, even as we approach the day when Donald Trump assumes the U.S. Presidency.

Effect on BTC Price

In simpler terms, the large withdrawals from the U.S. Bitcoin ETF haven’t significantly affected Bitcoin’s price today. Over the past day, Bitcoin has dipped slightly by 0.18%, but it has mainly been trading in the green for most of the hours. However, over the last week and month, its price has decreased by 4.03% and 6.40% respectively, which could suggest a correction after reaching $100,000. The market value of Bitcoin tokens has dropped by 0.26%, and the trading volume in the last 24 hours has reduced by 10.13%. Open Interest is down by 0.95% due to the recent volatility, which stands at around 3.62%.

Some indicators suggest that the surge in Bitcoin (BTC) could return, with price drops being viewed as opportunities to buy more BTC at reduced costs. Additionally, the appointment of Paul Atkins as the new SEC Chair, replacing Gary Gensler who is expected to step down when Donald Trump takes office, might contribute positively to the BTC market.

Additionally, it seems that the recently released employment figures in the U.S. have sparked investment interest, potentially leading to an increase in Bitcoin and other cryptocurrencies over the near future. However, there remains uncertainty about the magnitude of the upcoming interest rate reduction, predicted to be 0.25%, by the Federal Open Market Committee.

What’s Happening to Spot Ether ETF?

During a recent decline in Bitcoin ETF investments, it’s important to mention that this trend is also observed with Spot Ethereum ETFs, with Fidelity’s FBTC standing out as the top performer on the list. On January 10, 2025, FBTC experienced an outflow of approximately $65.4 million, while no data from BlackRock was available. The only other issuer to report its figures was Bitwise’s ETHW, with a reported outflow of $3.1 million.

As a crypto investor, I’ve observed that there was an overall withdrawal of $68.5 million from the market today, bringing the total historical inflow to approximately $2,456.3 million. Additionally, Spot Ether ETFs have experienced outflows for the second consecutive day, with a significant negative flow of $159.4 million on January 08, 2025.

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2025-01-11 11:23