Will GBTC’s Selling Pressure Push BTC Price to $35,000?

• BlackRock has edged its Wall Street rival Fidelity and crypto firm Bitwise to lead in Bitcoin spot ETF inflows with $710 million in its first three days.
• Grayscale has been dealt the most significant blow, with its GBTC ETF losing over $1.2 billion in net flows as investors flee the high charges in the competitive market segment.

BlackRock has been the biggest beneficiary of the Bitcoin spot ETF approvals by the SEC, with data showing that the Wall Street giant has recorded the highest inflows in the market, edging out its rival, Fidelity. Grayscale, the largest crypto native player in the sector, is the biggest loser as investors flee its high fees.

Data from Bloomberg Intelligence revealed that BlackRock’s iShares Bitcoin Trust saw a net flow of $710.4 million in the first three days.

LATEST: Day Three in books the total rolling NET FLOWS is +782M as the Newborn Nine have more than offset the the $GBTC Gouge (which is now up to -$1.2b after half a bil yest, ouch). The Nine’s $2b in aum and $4.5b in volume organic is fab for first 3 days, % prem solid too. pic.twitter.com/NDeubgi8mz

— Eric Balchunas (@EricBalchunas) January 17, 2024

Fidelity, another Wall Street giant with over $4.5 trillion in assets under management, came in second with net flows of $524 million as the two traditional finance behemoths take an early lead. The best-performing ETF from a crypto-native player is Bitwise’s Bitcoin ETP, which recorded just over $305 million in the first three days. Smaller players like Valkyrie and Invesco have yet to hit the $100 million mark.

The Bitcoin spot ETFs have set the record for a first-day debut in the US and have continued to impress, hitting $10 billion in volume for the first three days. Bloomberg ETF expert Eric Balchunas noted, “Easily the biggest splash in ETF history for a first day. No matter where you look, it’s superseded expectations.”

Conversely, Grayscale has been the biggest loser in the ETF race. Data shows the firm has lost $1.2 billion in net outflows since the ETFs launched as concerns arise that the selling pressure from the GBTC outflows could push the price of Bitcoin below $35,000.

After skyrocketing to surge past $48,000 on anticipation of an ETF, Bitcoin’s price has since lost momentum, and for the past week, it has stagnated around $42,000. The volume has declined from an average of $50 billion a week ago to $19.8 billion in the past 24 hours.

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