The cumulative trading volume of spot Bitcoin ETF products surpassed $15 billion on their sixth day of trading. As Bitcoin’s price dipped below $41,000 during the day, it was trading at $42,002 at the time of writing. The article explores the potential impact of ETF developments on Bitcoin’s price.
In the past 24 hours, Bitcoin’s volatility led to approximately $87 million in liquidations in the futures market, with over $74 million from long positions. According to data from CoinGlass, the overall crypto market saw over $230 million in liquidated long positions and contributed to a total of $271 million in liquidations across various exchanges.
Liquidations in the futures market occur when an investor’s position is forcibly closed due to insufficient funds to cover losses. This happens when market movements are unfavorable for the investor’s position, leading to the loss of the initial margin or a predetermined amount by the investor.
Amidst Bitcoin’s price decline, there was a net outflow of $137.4 million from spot Bitcoin ETF products on January 18th, largely due to a $582.3 million withdrawal from Grayscale’s fund. JPMorgan analysts, led by Nikolaos Panigirtzoglou, warned that continued profit-taking by investors in the spot ETF converted from Grayscale’s flagship GBTC fund could exert additional downward pressure on Bitcoin’s price in the coming weeks.
Despite the outflows, other new ETF products continue to see net inflows. On January 18th, Fidelity’s fund saw an inflow of $177.9 million, while BlackRock’s iShares Bitcoin ETF observed $145.5 million in inflows. The new Bitcoin ETF products that started trading last week reached a total volume of $1.4 billion on January 19th, with Grayscale’s fund accounting for 58.5% of the total flow.