Bitcoin Exchange-Traded Funds (ETFs) in the US Witness Outflows Amidst Global Market Shift

Outflows Recorded in Spot Bitcoin ETFs

The spot Bitcoin exchange-traded funds in the United States have recorded outflows for the first time since President Donald Trump’s inauguration, marking a significant shift in market sentiment. According to recent data, the 12 spot Bitcoin ETFs saw a total of $457.48 million in outflows on January 28. This development comes after a seven-day inflow streak that saw over $4.2 billion enter the funds.

Fidelity’s FBTC Leads Outflows

Fidelity’s FBTC experienced the highest outflows of the day, with a total of $268.59 million. Grayscale’s GBTC followed closely with $108.47 million in outflows. Other notable outflows were recorded in Bitwise’s BITB and ARK 21Shares’ ARKB, with $88.57 million and $50.11 million, respectively. VanEck’s HODL reported a modest outflow of $5.68 million on the day.

BlackRock’s IBIT Sees Inflows

Meanwhile, BlackRock’s IBIT stood out as the only outlier, recording $63.94 million in inflows. This brings its cumulative net inflows to nearly $40 billion since its launch. The remaining six BTC ETFs saw zero flows on the day.

Total Trading Volume and Market Impact

The total trading volume for these investment products stood at $4.8 billion on January 27, significantly higher than the $3.65 billion recorded the previous day. The significant shift in flows from these BTC ETFs occurred as Bitcoin dropped from $105,000 to an intraday low of $97,855, coinciding with nearly $1 billion in liquidations across the global crypto market.

Market Sentiment and the Rise of DeepSeek

The primary reason for the crash appears to be investors adopting a risk-off sentiment following the success of DeepSeek, a Chinese competitor to ChatGPT. Developed at a fraction of the cost of U.S.-based projects like OpenAI and released as open-source, DeepSeek has raised concerns among analysts, who note that it poses a potential threat to U.S. dominance in the AI sector.

DeepSeek’s success has sparked concerns among analysts, who note that it poses a potential threat to U.S. dominance in the AI sector.

Bitcoin’s Recovery

At press time, Bitcoin has recovered and is up 2.6% over the past day, trading at $102,998 per coin. The market’s reaction to DeepSeek’s rise and its potential impact on the cryptocurrency market remains a topic of interest among investors and analysts.

If you’re looking for more insights on the crypto market and its trends, be sure to check out more news on Global Crypto News.

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