- Despite liquidating $9.39M of long positions, BTC climbed back above $41K on Friday.
- BTC holders were relieved to see a slowing pace of Grayscale ETF outflows finally.
- Grayscale’s GBTC holdings comprise $21.5 billion in assets under management (AUM).
After consecutive weeks of a downward trend, the king crypto Bitcoin (BTC) is racing back towards $42,000 with a 3.4% upswing in the last 24 hours. Notably, the positive change in Bitcoin’s price trend comes after a 20% deficit since The Securities and Exchange Commission (SEC) approved all 11 inaugural Bitcoin exchange-traded funds (ETFs) on January 10, 2024.
According to the Elliott Wave trading theory, crypto startup owner Matthew Dixon spotted a breakout opportunity for BTC. As portrayed in the graphic below, the trendline underlying the price of $40,299.99 has already been breached, as Bitcoin soared past the mark despite $9.39M in long position liquidations over the past 24 hours.
At the time of publication, the largest digital asset, BTC, trades at $41,205.56, according to CoinGecko. Bitcoin’s chances for closing above $42,000 on the weekly charts heavily depend on the market sentiment, as Bitcoin holders finally saw a break from the continuous outflows of the largest ETF.
$4.4B In Outflows: Is the Grayscale ETF Storm Over?
With a combined order book of over $2.08 billion in bids, Bitcoin’s road to $42K has fewer obstacles since Grayscale’s GBTC ETF investors have put a pause on massively exiting their ETF positions. The biggest Bitcoin ETF managers’ clients have dumped $4.4 billion onto the markets in less than three weeks since the Bitcoin ETF approval was granted.
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Besides, the fallen FTX exchange added more selling pressure for BTC custodians in the last few weeks by dumping over $1 billion worth of GBTC shares. As FTX sold Grayscale’s shares, the bankrupt crypto exchange’s estate also dropped its lawsuit against the American digital currency investment giant.
According to a Crypto.com subsidiary, the outflows from the Grayscale Bitcoin Trust (GBTC) have slowed since January 24, 2024. However, the digital currency asset management heavyweight still has $21.5 billion worth of BTC under management.
On the Flipside
- The fund outflow from Grayscale’s GBTC ETF doesn’t necessarily indicate the customer’s distrust in Bitcoin as a long-term investment opportunity.
- Many traders are rumored to have exited positions because of the 1.5% management fee compared to competitors’ 0.2%.
Why This Matters
Bitcoin ETFs make a ground-breaking adoption case for Bitcoin and crypto. However, breakthroughs like this often become a ‘Buy the Rumor, Sell the News’ case for retail investors.
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