Inflows into spot Bitcoin (BTC) ETFs dropped by 69% compared to the day before, according to data from the on-chain analytics platform SoSoValue
SoSoValue also showed that Wednesday’s net flows into these ETFs were $248.65 million. BlackRock’s IBIT was the only fund with inflows of $344.38 million, while the others recorded outflows.
Grayscale’s Bitcoin ETF Records Highest Outflows
Grayscale’s GBTC noted the highest outflows at $47.93 million, while investors withdrew $34.67 million and $13.02 million from Bitwise’s BITB and ARK 21Shares’ ARKB, respectively. However, other Bitcoin ETFs didn’t record any movement on the day.
Despite the drop in inflows, these Bitcoin ETFs continued their record of successive days of inflows, accumulating more than $3.5 billion over the past four days. The data also revealed that these investment products’ total trading volume was $2.98 billion on Jan.22, while their cumulative net inflows since their launch rose to $39.23 billion.
Notably, the drop in inflows into these investment products coincided with the decline in BTC’s price. The leading digital asset is down 3.7% and trades at $101,504 at the time of writing.
Trump Administration and Regulatory Developments
In one of the biggest regulatory shifts, President Trump’s interim SEC chair, Mark Uyeda, unveiled a crypto task force on Tuesday. Led by Commissioner Hester Peirce, this task force has been tasked with creating a complete and transparent set of regulations for the cryptocurrency industry.
Matt Mena, a Crypto Research Strategist at 21Shares, weighed in on the potential implications of such a task force. He said the initiative may accelerate the approval time for other crypto ETFs, including those tied to popular cryptocurrencies like SOL, XRP, LTC, DOT, and DOGE.
Mena also said the task force’s focus on establishing adequate registration frameworks and a deeper relationship between regulators and industry players will smoothen the approval process for crypto ETFs. The 21Shares executive added that such efforts would bring more clarity to the regulatory environment, leading to broader crypto adoption.
Disclaimer
This article is provided for information only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
