Bitcoin (BTC) continues to show signs of recovery after a tetchy two weeks following the approval of 11 spot-bitcoin exchange-traded funds (ETFs).
The cryptocurrency standard bearer enjoyed a strong performance on the spot markets on Monday, surging more than 3% against the US dollar to close the session above $43,300.
The BTC/USD pair added another 0.2% this morning, bringing it to $43,400 at the time of writing.
On a week-on-week basis, bitcoin is nearly 10% higher, though this pales compared to gains witnessed in the blue-chip altcoin space.
Solana (SOL) is up more than 25% week on week, while Avalanche (AVAX) has skyrocketed more than 27%.
Cardano (ADA) and Polkadot (DOT) are also in bullish states, adding around 13% each, while BNB, Dogecoin (DOGE) and Ripple (XRP) have kept their weekly gains to the low single digits.
Ethereum (ETH), meanwhile, has failed to spark interest among traders. Despite enjoying a bullish Monday session, the second-largest cryptocurrency remains flat week on week.
Global cryptocurrency market capitalisation currently stands at $1.67 trillion, with bitcoin dominance at 52.5%.
Bitcoin’s week-on-week performance – Source: tradingview.com
On the bitcoin ETF front, net inflows into the 10 currently available funds have noticeably decreased, though are still $759 million in the green since launch, despite the Grayscale Bitcoin Trust (GBTC) chalking up more than $5 billion in outflows alone.
GBTC shareholders have opted to redeem their shares en masse due to the fund’s excessive 1.5% management fee in favour of the 0.25% fees (or less) available elsewhere.
But even GBTC’s outflows are slowing down. According to data shared by Fineqia International, GBTC saw an outflow of about $394 million last Thursday, and on Friday, the outflow hit its lowest point since launch at approximately $255 million.
In comparison, daily outflows were as high as $500 million following the 10 January ETF launch date.
Matteo Greco, research analyst at Fineqia International, commented: “The recent days of outflows suggest a diminishing pace of investors withdrawing funds from GBTC, indicating a potential for a more stable flow for the Grayscale product and, by extension, for BTC Spot ETFs.
“Despite last week’s net outflow, trading volumes remain robust, underscoring continued investor interest in these financial products. Since their launch, the cumulative volume of ETFs has nearly reached $25 billion, with a daily average trading volume of approximately $2.2 billion.”
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