Having peaked above $49,000 on the day the new ETFs opened, bitcoin has broken back below $39,000 overnight...

Data from Coinglass shows long-position liquidations for Bitcoin have been considerable in the days since the new ETFs were launched, but today's data is significantly lower, suggesting the initial purge may be slowing...

This is (purely coincidentally) 'great news' for Liz Warren and Gary Gensler who can gloat at their warnings of the dangers to investors of placing their hard-earned wages (after taxes) into these volatile, terrorist-funding assets.

But, maybe there's more to it - maybe this is not just 'sell the news'-driven profit-taking (or GBTC-discount-arb-driven recycling).

First things first, net of GBTC outflows, the whole spot bitcoin ETF complex has seen overall inflows of around $1 billion since inception...

The assumption in the above table is that the GBTC outflows are simply being recycled into the new ETFs and should therefore be netted off against the inflows into the new ETFs ($4.5BN inflows into new ETFs vs $3.5BN outflows from GBTC).

GBTC has been the dominant factor in outflows since inception (and yesterday saw the highest outflows since the new ETFs began with GBTC seeing a $640mm reduction...

Volumes have stabilized at around $2.5BN per day (again with GBTC accounting for around 40% of that)...

However, there could be another factor involved.

As CoinDesk reports, a large chunk of the exodus from GBTC was FTX's bankruptcy estate dumping 22 million shares, according to private data CoinDesk reviewed and two people familiar with the matter.

The 22 million shares it sold – which took FTX's GBTC ownership down to zero – were worth close to $1 billion.

So, instead of the GBTC outflows being recycled and netted off, a large portion of them is FTX liquidation-based - a one-off event, not a systemic pressure on the underlying crypto asset.