GBTC outflows pull down ETF momentum

Bitcoin ETFs lost their momentum amid heavy outflows from GBTC. On February 29, 2024, the number stood at $599 million. Since the US Securities & Exchange Commission announced the launch of Spot Bitcoin ETFs on January 10, 2024, this is the second-highest outflow. Nevertheless, BlackRock and Fidelity continued to see an upward trend in their inflow columns.

IBIT, iShares Bitcoin Trust by BlackRock, recorded an inflow of $612.1 million. This is an increase from the $520.2 million recorded on February 28. FBTC, Fidelity Wise Origin Bitcoin Fund by Fidelity, registered an inflow of $245.2 million, up from $126 million as of February 27, 2024. GBTC by Grayscale, however, marked an outflow of $216.4 million on February 28, 2024.

The recorded outflow did hamper the inflow figures, but the numbers are said to control the market. On February 29, 2024, James Seyffart believed that the picture was gloomier than one had imagined. The Bloomberg Intelligence ETF Analyst shared an update saying that the inflow was still a record high, with IBIT setting a record of its own.

GBTC’s outflows on February 29, 2024, increased to $599 million. The effect is evident from the way BTC is acting in the market. The Thursday session closed at $60,808, plummeting by 2.54%. The token is up and back to ~$62,000. Thursday’s figure marked a partial reversal of a 9.38% surge from Wednesday.

BTC is still above $60,000. As a matter of fact, the token even touched the milestone of $64,000 for a few moments.

Bitcoin is likely to experience a turning point in the near future. It would not be Halving, but the entry of two US banks that have decided to add Spot Bitcoin ETF to their list of offerings. These are Bank of America’s Merrill Lynch and Wells Fargo. Vanguard is on the sidelines at a time when both banks are confirmed to be offering the product.

BTC is currently listed at $62,181.61, down by 1.16% in the last 24 hours. ETH mirrors the trend with a drop of 1.75% during the same time window. It is exchanging hands at $3,427.45.

BTC is above the 50-day EMAs and also the 200-day EMAs. These are sending bullish vibes across the crypto ecosystem. With the token hitting above $62,000, the community is eyeing achieving the mark of $64,000, eventually testing the resistance at $69,000, the previous ATH as per our BTC prediction. A fall to $59,176 could put Bitcoin at risk of touching $57,000.

ETH is rolling out bullish sentiments, too, with values above 50-day and 200-day EMAs. The current resistance is set at $3,400, paving the way for the next resistance of $3,600. The agency has not confirmed any news on Spot Ether ETF. A confirmation would provide a major perspective on the token.