Key Points
- Spot Bitcoin ETFs in the U.S. witnessed a slowdown on Jan. 22, with inflows dropping by 69%.
- Despite the dip, spot Bitcoin funds maintained a four-day inflow streak, accumulating over $3.5 billion.
Spot Bitcoin exchange-traded funds (ETFs) in the United States saw a decline on January 22 as the price of Bitcoin (BTC) fell to around $102k.
Data from SoSoValue shows that inflows into spot Bitcoin ETFs fell by 69% from the previous day, amounting to $248.65 million on Wednesday. These inflows were entirely from BlackRock’s IBIT, which attracted $344.28 million from investors.
Outflows and Stagnation
Grayscale’s GBTC recorded outflows of $47.93 million. Bitwise’s BITB and ARK 21Shares’ ARKB also contributed to the negative momentum, with investors withdrawing $34.67 million and $13.02 million from these funds, respectively. Other Bitcoin ETFs remained unchanged on the day.
Despite the drop in inflows, the spot Bitcoin funds managed to extend their inflow streak to four consecutive days, amassing over $3.5 billion during this time. The total trading volume for these investment products was $2.97 billion on the day, with total net inflows since launch amounting to $39.23 billion.
Interestingly, the slowdown in investment product inflows coincided with Bitcoin (BTC) declining by 3% over the last 24 hours, trading at around $102k.
Kadan Stadelmann, CTO of Komodo Platform, suggested that the early days of Trump’s presidency might trigger a “sell the news” event. He postulated that the initial optimism in the crypto markets following Donald Trump’s election might wane as expected policy changes were likely already factored into prices before his inauguration.
Crypto Task Force
In related news, following his inauguration, President Trump’s newly appointed interim SEC chair, Mark Uyeda, quickly initiated a crypto task force. Led by Commissioner Hester Peirce, the task force aims to develop a comprehensive and clear regulatory framework for crypto assets.
Matt Mena, Crypto Research Strategist at 21Shares, commented that the newly formed crypto task force could potentially facilitate the approval of a wider range of crypto ETFs, including those linked to SOL, XRP, LTC, DOT, and DOGE. Mena stated that the task force’s objective is to “promote structured disclosure frameworks, practical registration paths, and enhanced regulator-industry engagement.” This could streamline the approval process for these crypto ETFs and pave the way for broader crypto adoption.
