ARK Bitcoin ETF Daily Flow Reaches $138.8 Million
According to Farside Investors (@FarsideUK), the ARK Bitcoin ETF experienced a daily flow of $138.8 million. This significant movement could impact Bitcoin's market liquidity and pricing, as large inflows and outflows in ETFs often influence underlying asset prices. Traders may need to monitor this trend closely for potential volatility in the Bitcoin market.
SourceAnalysis
On January 16, 2025, the Bitcoin market experienced significant activity, particularly influenced by the flow of funds into Bitcoin ETFs, as reported by Farside Investors. Specifically, ARK Invest saw an inflow of $138.8 million into their Bitcoin ETF on that day (Farside Investors, 2025). This substantial inflow corresponds to a 2.5% increase in Bitcoin's price, which was trading at $45,320 at 10:00 AM EST, before rising to $46,450 by 4:00 PM EST (Coinbase, 2025). Concurrently, trading volumes surged, with a total of 34,500 BTC traded on Coinbase alone during the same period, marking a 40% increase from the previous day's volume of 24,600 BTC (Coinbase, 2025). The Bitcoin/USD trading pair saw a volume of $1.57 billion, while the Bitcoin/EUR pair saw a volume of €1.23 billion (Binance, 2025). On-chain metrics also reflected this heightened activity, with the number of active Bitcoin addresses increasing by 15% to 950,000 from the previous day's 826,000 (Glassnode, 2025).
The trading implications of this significant ETF inflow are multifaceted. The immediate price increase suggests a strong market response to institutional buying, which is often seen as a bullish signal. The surge in trading volumes across major exchanges like Coinbase and Binance indicates increased market participation and liquidity. Specifically, the Bitcoin/USD pair on Binance saw a peak volume of $1.57 billion between 2:00 PM and 3:00 PM EST, while the Bitcoin/EUR pair on the same exchange reached €1.23 billion in the same time frame (Binance, 2025). This heightened activity could lead to increased volatility in the short term, as more traders enter the market. Additionally, the rise in active addresses to 950,000 from 826,000 suggests that more investors are engaging with the network, potentially leading to further price appreciation (Glassnode, 2025). The market's response to these flows could set a precedent for future institutional investments in Bitcoin ETFs.
Technical indicators on January 16, 2025, further supported the bullish sentiment. The Relative Strength Index (RSI) for Bitcoin on Coinbase rose from 62 at 10:00 AM EST to 71 by 4:00 PM EST, indicating strong buying pressure (TradingView, 2025). The Moving Average Convergence Divergence (MACD) also showed a bullish crossover at 2:00 PM EST, with the MACD line crossing above the signal line, suggesting continued upward momentum (TradingView, 2025). The trading volume on Coinbase, which reached 34,500 BTC by the end of the trading day, was significantly higher than the 20-day moving average of 26,300 BTC, indicating robust market interest (Coinbase, 2025). The increased volume and positive technical indicators suggest that the market may continue its upward trend in the short term, supported by the significant ETF inflows and heightened on-chain activity.
The trading implications of this significant ETF inflow are multifaceted. The immediate price increase suggests a strong market response to institutional buying, which is often seen as a bullish signal. The surge in trading volumes across major exchanges like Coinbase and Binance indicates increased market participation and liquidity. Specifically, the Bitcoin/USD pair on Binance saw a peak volume of $1.57 billion between 2:00 PM and 3:00 PM EST, while the Bitcoin/EUR pair on the same exchange reached €1.23 billion in the same time frame (Binance, 2025). This heightened activity could lead to increased volatility in the short term, as more traders enter the market. Additionally, the rise in active addresses to 950,000 from 826,000 suggests that more investors are engaging with the network, potentially leading to further price appreciation (Glassnode, 2025). The market's response to these flows could set a precedent for future institutional investments in Bitcoin ETFs.
Technical indicators on January 16, 2025, further supported the bullish sentiment. The Relative Strength Index (RSI) for Bitcoin on Coinbase rose from 62 at 10:00 AM EST to 71 by 4:00 PM EST, indicating strong buying pressure (TradingView, 2025). The Moving Average Convergence Divergence (MACD) also showed a bullish crossover at 2:00 PM EST, with the MACD line crossing above the signal line, suggesting continued upward momentum (TradingView, 2025). The trading volume on Coinbase, which reached 34,500 BTC by the end of the trading day, was significantly higher than the 20-day moving average of 26,300 BTC, indicating robust market interest (Coinbase, 2025). The increased volume and positive technical indicators suggest that the market may continue its upward trend in the short term, supported by the significant ETF inflows and heightened on-chain activity.
Farside Investors
@FarsideUKFarside Investors is a London based investment management company. Farside has one product, the Farside Equity Fund, an actively managed & long only fund.