Bitcoin BTC/USD spot ETFs recorded a small net inflow of $4.56 million on Monday as miner revenues signal a potential uptrend in the making.
What Happened: Significant contributions came from Fidelity’s ETF FBTC, which added $24.93 million, and the BlackRock ETF IBIT, with an inflow of $11.54 million.
However, Grayscale's GBTC recorded a notable outflow of $40.33 million, reflecting mixed sentiment within the market, according to data from SoSo Value.
Meanwhile, Ethereum spot ETFs experienced a major outflow of $79.21 million, largely driven by a $80.55 million outflow from Grayscale's ETHE, though Bitwise's ETHW saw a modest inflow of $1.34 million, data shows.
Bitcoin continues to hover near $63,500, up just 0.1% over the past 24 hours, while Ethereum ETH/USD has seen a slight decline, trading down 0.1% at $2,642.
Why It Matters: As institutional interest in Bitcoin ETFs persists, industry experts are weighing in on what could drive prices in the near term.
Eric Balchunas, Senior ETF Analyst at Bloomberg, highlighted BlackRock‘s BLK method of securing its Bitcoin holdings, stating, “BlackRock runs their own blockchain node and ensures that Coinbase Inc. COIN deposits Bitcoin directly on-chain within 12 hours of instruction. This is why they, and other major ETF issuers, are trusted by America’s advisors—they've perfected this process over decades.”
Balchunas’ comments underline the trust institutions place in BlackRock's processes, which remain key to the continued confidence in Bitcoin ETFs.
On the broader market dynamics, Iliya Kalchev, a Nexo Dispatch Analyst, pointed out the potential impact of Bitcoin miners on price action.
"Bitcoin miner revenues remain at multi-year lows, creating the potential for price appreciation if miners start distributing Bitcoin at higher prices to sustain their operations," he told Benzinga.
Kalchev added that traders, rather than investors, could be the primary drivers of Bitcoin's short-term moves, with Bitcoin open interest at over $25 billion.
He highlighted that a breakout above $66,000 would signal growing optimism as the options market currently favors calls above that level.
Ilia Otychenko, Lead Analyst at CEX.IO, provided a technical analysis of Bitcoin's current resistance levels.
"Bitcoin remains near the 200-day SMA and the previous local high, both key resistance levels. A sustained break above the 200-day SMA could drive Bitcoin toward the $66,000–$67,300 supply zone. However, failure at these levels may lead to consolidation or a drop to $62,700," Otychenko explained.
He also noted that, while Bitcoin has tested major resistance, low trading volumes during the attempt have prevented further gains.
Despite short-term uncertainties, Otychenko remains bullish on Bitcoin's longer-term outlook.
"The weekly RSI has broken above its descending resistance trendline, a historically bullish indicator. If this pattern holds, Bitcoin could be on track for a new all-time high in the coming months," he added.
What’s Next: Industry experts will have the opportunity to explore these themes in depth at Benzinga’s Future of Digital Assets event on Nov. 19.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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