Bitcoin Heads Towards Fifth Consecutive Monthly Gain, Longest Winning Streak Since Pandemic

Bitcoin Grayscale Spot ETFs
Last updated:
Author
Author
Ruholamin Haqshanas
About Author

Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

Bitcoin is poised to achieve its fifth consecutive monthly gain, marking its longest winning streak since the pandemic-induced rally fueled by accommodative monetary policies.

In January, Bitcoin (BTC) experienced notable price swings, driven by the introduction of the first US spot Bitcoin exchange-traded funds (ETFs) and evolving views on monetary policy.

However, if the leading cryptocurrency maintains its upward trajectory, it will achieve its longest streak of monthly gains since the six months spanning October 2020 to March 2021 during which it reached a record high of almost $69,000.

Bitcoin Surged on Spot ETF Optimism

The launch of spot Bitcoin ETFs by prominent issuers such as BlackRock and Fidelity Investments on January 11 significantly impacted Bitcoin’s performance.

Last year, Bitcoin surged by nearly 160% in anticipation of these ETF launches, as investors speculated they would attract new participants to the market.

However, following the ETFs’ debut, Bitcoin experienced a 12-day drop of approximately 21% as traders closely monitored Bitcoin ETF performance.

One of the notable products, the $21 billion Grayscale Bitcoin Trust, transitioned from a closed-end structure into an ETF format.

Initially, investors withdrew funds from the Grayscale fund after the conversion.

The pace of these withdrawals has since slowed, enabling Bitcoin to recover some of its losses.

Decrease in GBTC Outflows Impact Bitcoin

The decrease in outflows from the Grayscale fund has positively impacted market sentiment, as noted by Sean Farrell, the head of digital asset strategy at Fundstrat Global Advisors LLC.

In a recent note, Farrell emphasized the significance of this development for the overall market.

Data compiled by Bloomberg reveals that the ten ETFs have collectively attracted a net inflow of $1 billion thus far.

These ETFs have had the most successful launch in history, both in terms of trading activity and investor flows, according to Bloomberg Intelligence.

In addition to ETF developments, investors are closely following this week’s Federal Reserve interest-rate decision, with probabilities evenly split regarding the possibility of a rate cut in March.

Any significant changes to this outlook could influence Bitcoin and the broader cryptocurrency market, given their sensitivity to shifts in sentiment and perceptions of liquidity.

Overall, if the leading cryptocurrency continues its upward movement, it will mark the fifth consecutive monthly gain.

Notably, BlackRock’s spot Bitcoin ETF surpassed $2 billion in assets under management (AUM) just two weeks after its launch on the Nasdaq.

The ETF, known as the iShares Bitcoin Trust (IBIT), has seen its market capitalization reach $2.11 billion due to Bitcoin’s recent price performance.

Fidelity’s Wise Origin Bitcoin Fund (FBTC) is currently trailing behind with $1.8 billion in inflows over the past 10 days.

The annual fees charged by ETF issuers play a role in attracting capital.

BlackRock set its fee for the iShares ETF at 0.12% for the first 12 months or until the first $5 billion in assets under management, after which it plans to increase it to 0.25%.

Other issuers, such as ARK Invest, charge 0.21%, VanEck lists a fee of 0.25%, and Bitwise charges 0.20%.

More Articles

Bitcoin News
Tether CEO Paolo Ardoino Dismisses JP Morgan’s Bitcoin Sell-Off Prediction
Hassan Shittu
Hassan Shittu
2025-02-13 16:12:40
Blockchain News
N.Korean Hackers Boost Crypto-Looting Methods: Hiding Malware in GitHub, NPM Packages
Sead Fadilpašić
Sead Fadilpašić
2025-02-13 16:03:27
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors