Why Bitcoin ETFs Are as Exciting as Watching Paint Dry! 😴💸

by

Dearest reader, it is with a heavy heart and a touch of mirth that I must inform you of the rather lackluster state of inflows into the U.S. spot Bitcoin ETFs, which have remained disappointingly feeble for a second consecutive day. This unfortunate trend appears to be a direct consequence of the Federal Open Market Committee’s recent decision to maintain interest rates at their current level, thus casting a pall over the spirits of investors. 😒

According to the esteemed data purveyor, SoSoValue, the twelve spot Bitcoin ETFs managed to attract a mere $92.09 million in inflows on the 29th of January, perpetuating this rather dreary trend. Notably, the majority of these inflows were courtesy of Grayscale’s mini Bitcoin Trust, which, in a fit of enthusiasm, drew in $106.23 million, followed by Fidelity’s FBTC, which could only muster $18.2 million. One might say that the latter is akin to bringing a spoon to a feast! 🍽️

In a rather unfortunate turn of events, BlackRock’s IBIT, which was once on the precipice of holding a staggering $60 billion in net assets, experienced a rather embarrassing $92.09 million in outflows, thus bringing an end to its nine-day inflow streak. Bitwise’s BITB also reported a net outflow of $3.96 million, while the remaining eight BTC ETFs were as lively as a gathering of the most tedious of relatives—recording “0” flows. 😅

The total trading volume for investment products stood at a rather unimpressive $3 billion on the 29th of January, while their total net assets amounted to $121.36 billion, which, if one were to be generous, accounts for a mere 5.88% of the total Bitcoin supply. One might wonder if the remaining 94.12% is simply hiding under the proverbial bed! 🛏️

Despite the Fed’s dovish stance, Bitcoin (BTC) managed to rise a modest 3.1% over the past day, exchanging hands at the princely sum of $105,366 at the time of this writing. It seems that even in the face of such dismal inflows, our dear Bitcoin retains a certain charm. 💁‍♀️

“While [yesterday’s] Fed decision didn’t shake the market, the bigger picture remains clear—investors are waiting for confirmation that rate cuts are on the horizon,” remarked Matt Mena, a crypto research strategist at 21Shares, with a tone that suggests he has seen this all before. 🧐

Market participants, in their infinite wisdom, are now turning their attention to the forthcoming Personal Consumption Expenditures (PCE) report, which is set to be unveiled this Friday. This report is anticipated to serve as the next significant catalyst for risk assets, including our beloved Bitcoin. Until such signals emerge, it appears that Bitcoin shall continue to consolidate within its current range, with $105k serving as a critical breakout level and $108k as the next major upside target, should Friday’s data favor risk assets, as Mr. Mena so sagely noted. 📈

Read More

2025-01-30 09:36