15 Jan 2024

Bitcoin fell on successful ETF launch

The U.S. spot Bitcoin ETFs were approved as expected last Wednesday. In this week's market report, we cover why Bitcoin fell despite the ETF launch's success and how the market is structurally changing.
The Bitcoin ETFs were approved
As expected, the U.S. spot BTC ETFs were approved last Wednesday, with trading starting already the following day. 
Large net inflows over the first two days
The spot ETF launches were a success, with the new U.S. spot ETFs seeing 35,227 BTC in inflows and seeding in its first two days of trading. The inflows were accompanied by substantial outflows from GBTC and BITO, reducing the net positive flow in U.S. markets to 17,620 BTC. 
Net outflows outside the U.S.
Following the U.S. spot ETF approval, flows to ETPs in other jurisdictions quickly shifted from inflows to outflows. After the spot ETF approval, Canadian and European BTC ETPs saw net outflows of about 5,000 BTC.
BTC fell despite net inflows
How could Bitcoin tumble on such a strong launch? The answer is twofold: structural and basic market psychology. 
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