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Making the top of crypto news rounds today, Bitcoin (BTC) ended the week at approximately $48,300, showing a 13.4% increase from the previous week’s closing price of $42,600.
The increased inflow into BTC Spot ETFs was the primary driver behind this price appreciation, according to Matteo Greco, Research Analyst at the publicly listed digital asset and fintech investment business Fineqia International.
The outflow from the Grayscale Bitcoin ETF (GBTC) was expected to lessen after the initial couple of weeks of trading. This expectation materialized. GBTC outflows saw a significant decrease near the end of January and continued to decline through February, Greco said in an email.
The daily outflow from GBTC during the first two weeks following the ETF approval averaged around $500 million. However, total outflows from GBTC in the past week stood at approximately $415 million. This is a daily average of about $83 million – nearly an 85% reduction compared to the initial two weeks of trading.
“The noticeable correlation between the diminishing outflows from GBTC and the upward trend in prices is also evident when examining the total daily flows into BTC Spot ETFs.”
The outflows’ substantial reduction began on January 26, coinciding with the beginning of a consistent influx into BTC Spot ETFs. This resulted in eleven consecutive days of net inflows, which began on January 26.
“Furthermore, there is a strong correlation between the magnitude of the inflows and the reduction in GBTC outflows.”
GBTC recorded a cumulative outflow of $415 million last week, while BTC Spot ETFsRead more on cryptonews.com