Bitcoin (BTC) has recently demonstrated a rebound, stabilizing after a volatile fortnight that followed the sanctioning of 11 spot-bitcoin exchange-traded funds (ETFs).
The leading cryptocurrency exhibited robust performance in the spot markets on Monday, climbing over 3% against the US dollar, concluding the trading day above $43,300.
As of this writing, the BTC/USD has a change of 2.65% over the past 24 hours as of 10:57 a.m
On a weekly comparison, Bitcoin has ascended nearly 10%, a modest rise when contrasted with the more substantial increases in the major altcoin sector.
Solana (SOL) has surged over 25% over the past week, while Avalanche (AVAX) has soared by more than 27%.
Other cryptocurrencies like Cardano (ADA) and Polkadot (DOT) are also experiencing bullish trends, each growing by approximately 13%, whereas BNB, Dogecoin (DOGE), and Ripple (XRP) have maintained their weekly increases in the lower single-digit range.
Ethereum (ETH), on the other hand, hasn’t generated much excitement among traders. Despite a positive performance on Monday, the second-largest cryptocurrency by market cap has remained relatively unchanged on a week-to-week basis.
The total market capitalization of cryptocurrencies currently stands at $1.67 trillion, with Bitcoin’s market dominance at 52.5%.
Regarding the Bitcoin ETF market, there has been a noticeable decline in net inflows across the 10 available funds, yet they still maintain a positive balance of $759 million since their inception. This is in spite of the Grayscale Bitcoin Trust (GBTC) experiencing over $5 billion in outflows.
Investors in GBTC have been massively redeeming their shares, driven by the fund’s high management fee of 1.5%, in contrast to the lower fees of 0.25% or less offered by other funds.
However, the rate of outflows from GBTC is reducing. Data from Fineqia International shows that GBTC had an outflow of around $394 million last Thursday, and by Friday, the outflow dropped to its lowest since the fund’s start, at about $255 million. This is a significant decrease compared to the daily outflows of up to $500 million observed following the ETF launch on January 10.
Matteo Greco, a research analyst at Fineqia International, noted: “The recent trend in outflows indicates a slowing down of investors pulling out from GBTC, suggesting a possibility of more stable capital movements for the Grayscale product and, consequently, for BTC Spot ETFs. Despite the net outflows last week, trading volumes have remained strong, highlighting ongoing investor interest in these financial instruments. Since their introduction, the total trading volume of ETFs has almost reached $25 billion, with an average daily trading volume around $2.2 billion.”
