On January 23, Bitcoin ETFs in the U.S. experienced a significant decline in inflows, totaling $188.65 million, marking the lowest daily figure of the week. This is a stark contrast to the over $1 billion inflows recorded on January 20, coinciding with the inauguration of Donald Trump.
ETF Performance Breakdown
- Top Performers:
- BlackRock’s IBIT: Continued its dominance with the highest inflows for the fifth consecutive day.
- Bitwise’s BITB: Secured second place, attracting $42.15 million.
- Other Notable Performers:
- Invesco Galaxy’s BTCO: Raised $12.38 million.
- Grayscale’s Mini Bitcoin Trust: Recorded $11.9 million.
- Fidelity’s FBTC: Added $9.16 million.
- ARK & 21Shares’ ARKB: Brought in $8.35 million.
- Outliers:
- Grayscale’s GBTC: Stood out as the only Bitcoin fund to experience an outflow, with investors withdrawing $49.94 million.
- Five other crypto ETFs: Reported no inflows or outflows, reflecting minimal activity.
Market Activity
- Trading Volume: Despite the decline in inflows, total Bitcoin ETF trading volume hit $9.59 billion, the second-highest in history, following the $10.39 billion record on March 5, 2024.
Impact of Policy Developments
The slowdown in inflows coincided with President Donald Trump’s executive order establishing a digital asset task force. While intended to address the evolving digital asset landscape, the order’s wording fell short of market expectations, contributing to uncertainty and cautious investor sentiment.
Key Takeaways
- The strong start to the week suggests continued interest in Bitcoin ETFs, but policy ambiguity may have tempered investor enthusiasm.
- BlackRock’s IBIT remains a standout performer, while Grayscale’s GBTC faces challenges, likely reflecting broader concerns about its pricing or structure.
- The executive order highlights growing government focus on digital assets but also underscores the market’s sensitivity to regulatory developments.
This trend illustrates how macroeconomic and regulatory events continue to shape the trajectory of institutional Bitcoin adoption.