Bitcoin continues to hover around $41,000 as Grayscale’s fund dominates spot ETF volumes

Bitcoin BTC +0.06% continued to flirt with the $41,000 mark for the second consecutive day as cumulative volume for the 11 new spot ETFs surpassed $15 billion on their sixth day of trading.

The world’s largest crypto currency by market capitalization declined 1% to $41,065 at 1:17 p.m. ET, according to The Block data. It dipped below $41,000 for the first time in more than a month yesterday.

Over the past 24 hours, price volatility has resulted in liquidations of almost $87 million in leveraged bitcoin positions, with the majority (over $74 million) being longs.

Bitcoin has dipped below $41,000 for the second day in a row. Image: The Block’s Prices Page.

The overall crypto market saw over $230 million of liquidated long positions in the past 24 hours, contributing to a total of $271 million in liquidations across various centralized exchanges, according to CoinGlass data.

In derivatives markets, liquidations take place when a trader’s position is forcibly closed due to insufficient funds to cover losses. This situation arises when market movements are unfavorable to the trader’s position, resulting in the depletion of their initial margin or collateral.

Bitcoin spot ETFs see net outflow

Bitcoin’s price declines came amid a net outflow of $137.4 million from spot bitcoin ETFs yesterday, with most of that occurring because of the $582.3 million that came out of Grayscale’s fund.

JPMorgan analysts led by Nikolaos Panigirtzoglou said yesterday that bitcoin’s price could face additional downward pressure in the coming weeks if investors in Grayscale’s spot ETF, which was a conversion from its flagship GBTC fund, continue to take profits.

“Between bitcoin price decline & outflows, GBTC has shed approx $5.5bil in assets since ETF conversion,” Nate Geraci, president of investment advisor The ETF Store, wrote in a post on X.

The other new ETFs have been seeing net inflows, with $177.9 million flowing into Fidelity’s fund yesterday, according to The Block Data. BlackRock’s iShares Bitcoin saw an inflow totaling $145.5 million on Thursday.

The new bitcoin ETFs, which started trading last week, had seen total volume of $1.4 billion on Friday by 1:17 p.m. ET, with Grayscale’s fund accounting for 58.5% of the total flow.

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