Bitcoin (BTC) has accelerated its recovery, engulfing the rest of the market despite continued outflows from spot Bitcoin exchange-traded funds. The US government has moved to sell $131 million in BTC seized from the Silk Road. Meanwhile, Terraform Labs went bankrupt.
Spot Bitcoin ETF records outflows
- This week saw a large negative net outflow from the spot Bitcoin ETF market, primarily due to large outflows from the Grayscale Bitcoin Trust (GBTC) as investors exited the project due to high fees. A flow has occurred.
- In particular, on January 24th, the spot Bitcoin ETF market recorded its largest intraday outflow since trading began. Today marks the ninth day of trading for these products, with cumulative negative net flows of $159 million.
- All other ETF products except GBTC received inflows on January 24th. However, these inflows were not large enough to outweigh the outflows from GBTC ($429 million).
- On January 25, the 10th day of trading, net flows for these products were even more negative, totaling $80 million. GBTC once again recorded heavy outflows while other products such as BlackRock’s IBIT recorded inflows.
- Grayscale ETF products saw outflows of $394 million on January 25th, followed by $170 million inflows from BlackRock’s IBIT product and $101 million inflows from Fidelity’s FBTC. canceled out.
- Amid these outflows, a report earlier this week confirmed that Grayscale has sold 52,227 Bitcoin tokens worth $2.14 billion since the ETF’s approval. According to the data, Grayscale held 566,973 BTC worth $23.21 billion at the time.
- These declines and outflows amplified selling pressure on BTC and contributed to its sustained downward trend. However, JPMorgan analysts emphasized on January 25 that the sell-off from GBTC is slowing.
Alameda drops Grayscale lawsuit, FTT soars
- As these GBTC leaks continue, reports this week confirmed that FTX’s sister company Alameda Research has dropped its lawsuit against Grayscale, its executives and affiliates.
- Interestingly, private data further suggests that FTX sold 22 million GBTC shares, a move that may have influenced the recent lawsuit withdrawal. FTX Token (FTT), the native token of the FTX ecosystem, surged 10% following these reports.
Asia enters Bitcoin ETF discussion
- This week, Asia was also in the spotlight with the debate over spot Bitcoin ETFs, led by the United States. Reports on January 22 suggested that Hong Kong could debut a spot BTC ETF product in the middle of this year.
- Shortly after this disclosure, it was confirmed that several Asian asset management firms, including Venture Smart Financial Holdings and Value Partners Group, had expressed interest in launching the product.
Bitwise unveils ETF wallet, SEC delays Spot Ethereum ETF
- In the United States, asset management firm Bitwise has become the first company to manage a spot Bitcoin ETF to share the physical Bitcoin address of the ETF product. The move, which was praised by the cryptocurrency community, was aimed at increasing transparency.
- The wallet started accepting donations from the public after going public, with one receiving a notable inflow of 0.00042069 BTC from an unidentified address. His BRC-20 tokens also arrived at this address, bringing his total donation to $5,000.
- Meanwhile, the US SEC this week postponed decisions on two spot Ethereum products, with BlackRock’s product delayed until March and Grayscale’s filing until May.
- Ahead of the regulatory watchdog’s decision, Commissioner Hester Peirce asserted that the SEC does not intend to take the same approach to Spot Ethereum ETF filings as it did for Bitcoin products, and that they have learned their lesson. He pointed out that.
Bitcoin recovers $42,000
- Despite bearish pressure from outflows from spot Bitcoin ETF products, Bitcoin recorded a recovery in the second half of the week. BTC fell to a year-to-date low of $38,555 on January 23rd after an extended bear market capped at $40,000.
- Shortly after this decline, the asset recovered, rising 4.66% to $41,823 on January 26th. Bitcoin eventually recovered, surpassing $42,000 on January 27, hitting a 10-day high of $42,842. In response, the rest of the market recorded similar gains.
US government to scrap BTC tokens
- Bitcoin was aiming for a full-fledged recovery from its recent slump, but reports that the US government intends to sell $131 million in BTC seized from the Silk Road three years ago raised fears of a decline. has resurfaced.
- This week also witnessed new developments surrounding the defunct Silk Road market. A market drug lord has pleaded guilty to running an illegal drug network and forfeited approximately $150 million in crypto proceeds.
Terraform Labs files for bankruptcy
- Nearly two years after the collapse of the Terra ecosystem, Terraform Labs, the company behind the project, filed for Chapter 11 bankruptcy this week amid a legal battle in the United States.
- Recall that crypto trading platform Crypto.com announced plans to delist Terra (LUNA) last week. Following Terraform Labs’ bankruptcy filing, the exchange is also seeking to delist Terra Classic (LUNC).