Cristian Palusci2024-02-15

The newborn spot ETFs continue to attract record inflows

During the latest trading session, the new Bitcoin ETFs saw inflows of $340 million, despite outflows from the Grayscale Bitcoin Trust and Invesco Galaxy of around $160 million Yesterday the price rose before the US trading session and then moved mostly sideways. I imagine this is due to traders trying to frontrun the buying pressure during the Wall Street session, with ETFs continuing to suck BTC out of the market at the pace of an industrial vacuum cleaner. After the $50,000 breakout I really have no idea how much more Bitcoin can push without a break (at $53K there is a huge GEX, which could act as first resistance). But it is unlikely that Bitcoin will drop significantly if we continue to go at the pace of 300 - 500 million dollars in net inflows per day, especially considering those BTC are removed from the market for a long time. All this is just around the corner from the halving, which could produce an epochal supply crunch. The only source of concern is the aggregated open interest at levels last seen in spring 2022, during the last crypto market rally before the bear market. From these levels, any moment is a good time to trigger the classic deleveraging dynamics based on sudden flushes.