On January 22, spot Bitcoin exchange-traded funds (ETFs) in the United States saw a noticeable slowdown in inflows, coinciding with Bitcoin’s price dropping to approximately $102,000. According to data from SoSoValue, inflows into Bitcoin ETFs declined sharply, falling by 69% compared to the previous day and reaching $248.65 million on Wednesday. Notably, BlackRock’s IBIT ETF accounted for the day’s entire inflows, attracting $344.28 million from investors.
Meanwhile, other major funds experienced outflows. Grayscale’s GBTC saw a withdrawal of $47.93 million, while Bitwise’s BITB and ARK 21Shares’ ARKB recorded respective outflows of $34.67 million and $13.02 million. Despite this downturn, the spot Bitcoin ETFs managed to maintain their streak of positive inflows for a fourth consecutive day, accumulating over $3.5 billion during this period. Cumulative inflows since launch now stand at $39.23 billion, with a trading volume of $2.97 billion recorded for the day.
The dip in ETF inflows mirrored Bitcoin’s 3% drop in value over the past 24 hours, as the cryptocurrency traded near $102,000 at the time of reporting. Analysts suggest that the initial optimism surrounding Donald Trump’s inauguration as U.S. President may be fading. Kadan Stadelmann, CTO of Komodo Platform, remarked that this could be a “sell the news” moment, where market enthusiasm diminishes after anticipated policy changes are already priced in.
In the regulatory landscape, President Trump’s newly appointed interim SEC Chair, Mark Uyeda, wasted no time in taking action. On Tuesday, the SEC launched a crypto task force, led by Commissioner Hester Peirce, aiming to establish a more structured and transparent regulatory framework for digital assets. This move is expected to enhance engagement between regulators and the crypto industry while streamlining processes for crypto-related products.
Matt Mena, Crypto Research Strategist at 21Shares, expressed optimism about the task force’s potential impact. According to Mena, this initiative could pave the way for the approval of a broader range of crypto ETFs tied to assets like Solana (SOL), XRP, Litecoin (LTC), Polkadot (DOT), and Dogecoin (DOGE). The task force’s focus on promoting clear disclosure frameworks and practical registration paths could signal a new era for crypto regulation and adoption.
While Bitcoin’s price adjustment and ETF inflow slowdown may signal short-term turbulence, the broader developments in policy and regulation could lay the groundwork for long-term growth in the cryptocurrency market.