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- The Bitcoin ETF market witnessed a dip of around 20%, with outflows picking up.
- Grayscale’s GBTC leads the charge, witnessing $640 million in outflows in just one day.
- According to Peter Schiff, the biggest loser in the market is Fidelity’s FBTC, with a fall of 32%.
The crypto community has been eagerly watching the economy following the long-anticipated Bitcoin ETF launch, analyzing the market moves. However, recent reports unearthed that the Bitcoin ETF outflow is “picking up,” overpowering the inflows.
James Seyffart, a Bloomberg analyst, shared an X post on January 23, citing the highest outflow of Grayscale’s ETF, GBTC. Today, GBTC saw a staggering outflow of $640 million, marking a “bad day for Bitcoin ETFs.” So far, Grayscale has seen a total GBTC outflow of $3.45 billion.
Woof. BAD day for #Bitcoin ETFs overall in the Cointucky Derby. $GBTC saw over $640 million flow out today. Outflows aren't slowing — they're picking up. This is the largest outflow yet for GBTC. Total out so far is $3.45 Billion. (Don't have BlackRock data yet) pic.twitter.com/jNOyiTADVq— James Seyffart (@JSeyff) January 23, 2024
With the SEC’s approval of the spot Bitcoin ETF and the subsequent flurry of trades in the ETF market, the crypto community has been anxious about the “Cointecky Derby.” Cointecky Derby is a term mentioned by Bitcoin analyst Eric Balchunas to denote the battle of ETF issuers, reminiscent of the prestigious race, Kentucky Derby.
Similarly, financial commentator Peter Schiff shared insights on the prevailing ETF bear market. In a recent tweet, he mentioned that the Bitcoin ETFs exhibited a 20% drop from their peak. According to his research, Fidelity’s FBTC is the biggest loser among the ETFs, with a fall of 32%.
All the spot #BitcoinETFs are now in bear markets, defined as a drop of 20% or more from the peak. The biggest loser is $FBTC, down 32%. I think the Vaneck #Bitcoin Trust should change its symbol from $HODL to GTFO.— Peter Schiff (@PeterSchiff) January 22, 2024
As per Seyffart’s analysis, with ETF outflows surpassing inflows, almost all the ETFs in “Cointecky Derby” are experiencing a downturn. A recent Bloomberg report revealed that the last week witnessed an overall ETF outflow of $21 million, with investors withdrawing their assets.
Initially, the crypto funds saw remarkable inflows, totaling $1.25 in the prior week. GBTC, since its launch, has seen $4.1 billion in inflows. BlackRock and Fidelity led the market with their ETFs, IBIT and FBTC, respectively, contributing to a majority of the inflows.
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