Bitcoin (BTC) reversed its losses from the weekend to end Monday’s trading session at $43,332 – gaining 3.02% in 24 hours. The world’s leading cryptocurrency held on to the $43,000 marker for the first since January 16.
Bitcoin’s surge was driven by two important events: demand driven by Bitcoin spot exchange-traded fund (ETF) trading volumes and the anticipation of the US Federal Reserve’s rate decision scheduled for February 1.
BlackRock’s IBIT Crosses Grayscale’s GBTC ETF In Single-Day Trading Volume
Last day, Bloomberg Intelligence ETF analyst James Seyffart shared data from day 12 of BTC spot ETF trades. His X post showed that the trading volumes for BlackRock’s iShares Bitcoin Trust (IBIT) were higher than Grayscale Bitcoin Trust (GBTC).
While the trading volume on Grayscale’s ETF was $112.9 million, BlackRock recorded a trading volume of $155.2 million. This marked the first time that one of the nine new Bitcoin-focused funds traded more than GBTC.
However, by the end of the day, GBTC overtook IBIT to continue leading the charts.
Bitcoin quickly reacted to the news, rallying to a high of $43,337 before easing back. The cryptocurrency had fallen to a session low of $41,835 before Seyffart’s tweet.
BitMex Research also released their day 12 trading numbers that showed outflows of $192 million from the Grayscale Bitcoin Trust ETF. Experts had earlier speculated that with outflows from the ETF slowing down, BTC was expected to have a more productive day.
GBTC saw net outflows of $255 million on January 30, day 11 of trading.
Invesco Galaxy Slashes Commission Fee While Charles Schwab Intends To List Bitcoin Spot ETF
The week began with the news that Invesco and Galaxy had cut down the long-term fee on the Invesco Galaxy Bitcoin ETF (BTCO) from 0.39 basis points to 0.25 bps, bringing it in line with ETFs from Franklin Templeton, Bitwise, and ARK 21Shares that charge the lowest fee among Bitcoin index issuers.
In their filing with the Securities and Exchange Commission (SEC), both companies said they would continue to waive the fees for the next six months until BTCO reaches $5 billion in assets under management.
Since it was launched, the Invesco Galaxy Bitcoin ETF has amassed close to $300 million in trading volume and manages around the same amount of BTC in its reserves.
GBTC and Wisdomtree Bitcoin Trust (BTCW) ETFs charge the highest fees among the listed spot BTC offerings, at 1.5% and 0.30% respectively.
Meanwhile, $3.4 trillion asset manager Charles Schwab has expressed its intention to enter the highly-contested Bitcoin ETF market. Last Friday, ETF Insitute founder Nate Geraci speculated that the Wall Street giant would “shock the world” and offer something that will be 10 bps in the coming months.
Charles Schwab is a pioneer in the ETF market and launching a spot Bitcoin exchange-traded fund would be a logical step for the broker-dealer and investment advisor considering that its chief rivals BlackRock and Fidelity are already in it.
The American multinational is ranked the fifth-largest ETF issuer in the world.
Bitcoin Technical Analysis
BTC is currently trading at $42,967 – down 0.9% in the last 24 hours. A stronger uptrend could see momentum building towards the $45,000 valuation, with the 50-day moving average providing potential support.
However, a breakdown below $38,000 could trigger a deeper retracement towards $35,000. This is where Bitcoin’s 200-day moving average and long-term support lie.
Key indicators like the Relative Strength Index (RSI) remain neutral near 50, suggesting indecisiveness among traders, while the MACD is slightly positive but lacks momentum for a sustained price breakout.
