Bitcoin - The downward pressure from the GBTC ETF is significantly fading

The bearish pressure on Bitcoin from the GBTC ETF is clearly waning. Is the Bull Run about to resume?

Bitcoin ETF

For the third consecutive time, the combined inflows of Fidelity and BlackRock ETFs have exceeded the outflows of the GBTC ETF GBTC.

Outflows from the GBTC ETF were only $188 million on Wednesday, January 31 (14 trading days). Knowing that we were around $600 million a week back.

In contrast, inflows into Fidelity and BlackRock amounted to nearly $350 million. To which we can add the crumbs collected by the other seven ETFs ($35 million).

Les entrées dans les neufs nouveaux ETF #Bitcoin surpassent les sorties de l'ETF GBTC de Grayscale. pic.twitter.com/zlKCuWHFWj

— Nicolas Teterel #FixTheFilters (@NTeterel) February 1, 2024

This gives us approximately a net inflow of $200 million into ETFs in a single day. That’s 4,740 bitcoins representing more than five times the quantity of BTC mined each day (and 10x after the halving in April).

However, it must be taken into account that these inflows only occur five days a week. On the other hand, bitcoins are mined seven days a week. Moreover, it is also likely that the outflows from the GBTC ETF will sooner or later turn into inflows into other ETFs.

Thus, on average, since January 11, ETFs have absorbed more than 150,000 bitcoins. That’s eight times more than the amount of bitcoins mined in the same period. It will be 16x starting from the halving.

Here is an infographic showing the evolution of the amount of bitcoins absorbed by ETFs:

The 9 new spot #Bitcoin ETF holdings visualized through 1/29/2024 with a total of 150,553 BTC.

BlackRock and Fidelity are surging past the others at an insurmountable pace. 🤯

Source: @apollosats 🔥 pic.twitter.com/4KpSeMslsv

— The ₿itcoin Therapist (@TheBTCTherapist) January 31, 2024

Here are the biggest publicly traded Bitcoin holders:

-Grayscale (ETF GBTC) : ~ 500,000 bitcoins
-Microstrategy : ~ 190,000 bitcoins
-The nine new ETFs : ~ 150,000 bitcoins
-Tether : ~ 70,000 bitcoins
-Miners : ~ 40,000 BTC

It is also worth noting that the trading volumes of BlackRock and Fidelity now surpass those of Grayscale.

All that being said, there are still nearly 500,000 bitcoins in the GBTC ETF which still refuses to lower its management fees that are eight times higher than the competition. For CEO Michael Sonnenshein, the 1.5% management fee is justified by “the size, liquidity, and experience” of the GBTC ETF.

In other words, we can’t dismiss the possibility that other clients will decide to switch to the competition. This will result in a new temporary bearish pressure.

Case to follow. Hodl!