Bitcoin News Today: BTC-Spot ETF Inflows Trend Downwards

Key Insights:

• BTC rose by 0.91% on Tuesday, ending the session at $43,065.
• Net inflows across the BTC-spot ETF market trended lower on Tuesday.
• On Wednesday, US lawmakers, SEC chatter, and BTC-spot ETF-related news need consideration.

BTC-Spot ETF Market Sees Declining Inflow Trends

On Tuesday, the flows and volumes for Monday highlighted a negative trend for BTC and the broader crypto market. Bloomberg Intelligence ETF Analyst James Seyffart shared the BTC-spot ETF market numbers for Day 17 of trading.

Significantly, only three BTC-spot ETFs registered net inflows on Monday. iShares Bitcoin Trust (IBIT) led the way, with net inflows of $137.3 million versus $38.0 million for Fidelity Wise Origin Bitcoin Fund (FBTC).

Recent inflow numbers for iShares Bitcoin Trust suggest a successful start to the BlackRock (BLK) advertising campaign,

Nonetheless, the latest figures question whether all nine can continue beyond the first year. IBIT has accumulated total inflows of $3,194 million, while FBTC has seen $2,638 million over the 17 days of trading. In contrast, WisdomTree Bitcoin Fund saw inflows of only $11.1 million.

Key takeaways from Day 17 of trading:

• • The BTC-spot ETF market extended the net inflow winning streak to seven sessions.
  • Grayscale Bitcoin Trust (GBTC) net outflows declined for the fifth consecutive session.
  • Excluding GBTC, IBIT led the way over 17 days in trading volume and net inflows.

The latest US Exchange-Traded Fund rankings by year-to-date (TYD) flows highlighted the ongoing success of IBIT. IBIT ranked fifth in YTD flows.

BitMEX Research shared the latest data showing GBTC net outflows, which decreased from $108 million to $72.7 million on February 6.

BTC price action likely contributed to the downward trend in net inflows. BTC last revisited the $44,000 handle on January 12, the day after the SEC approved the nine recently launched spot-BTC ETFs.

However, international crypto funds remained a victim of the newly launched BTC-spot ETF market.

International Crypto Fund Investors Migrate to BTC-Spot ETFs

On Tuesday, Bloomberg Intelligence Senior ETF Analyst Eric Balchunas shared a new BTC-spot ETF milestone, saying,

“Got our first holder reported for IBIT, it’s a Canadian asset manager called Redwood, looks like it sold the local Purpose Bitcoin ETF which is >1% fee and bought the US-based IBIT which is free till first $5b and 25bps thereafter. Great cost migration hitting crypto funds.”

Fee differentials between BTC-spot ETFs and international crypto funds continue driving investor migration from international crypto funds to ETFs.

Technical Analysis

Bitcoin Analysis

BTC remained above the 50-day and 200-day EMAs, sending bullish price signals.

A BTC break above the $43,500 handle would give the bulls a run at the $44,690 resistance level.

On Wednesday, investors should consider US lawmakers’ discussions, SEC activity, and news related to BTC-spot ETFs.

However, a break below the $42,968 support level and the 50-day EMA would bring the $39,861 support level into play.

The 14-Daily RSI reading, 53.63, indicates a BTC return to the $44,690 resistance level before entering overbought territory.

Ethereum Analysis

ETH remained well above the 50-day and 200-day EMAs, affirming bullish price signals.

An ETH return to the $2,400 handle would bring the $2,457 resistance level into play.

ETH-spot ETF-related updates need tracking.

However, an ETH fall through the $2,350 handle would give the bears a run at the 50-day EMA and $2,300 support level.

The 14-period Daily RSI at 54.39 suggests an ETH return to the $2,457 resistance level before entering overbought territory.