"Bitcoin Surges on Abu Dhabi ETF News, Then Cools Amid Outflows"
1min read Bitcoin (BTC) experienced a brief spike above $98,000, driven by news of Abu Dhabi's sovereign wealth fund investing in Bitcoin ETFs. However, the price has since cooled, struggling to maintain momentum amidst ETF outflows and altcoin dominance.
Barclays, a major financial institution, has joined the Bitcoin ETF bandwagon, reporting a new position in BlackRock's iShares Bitcoin Trust (IBIT). The bank holds 2,473,064 shares of IBIT, valued at $131 million, as of December 31. This move aligns with a growing trend of institutional adoption of crypto-related products, with Goldman Sachs and JP Morgan also increasing their Bitcoin ETF holdings.
A dormant Bitcoin wallet containing 300 BTC, valued at $29,368,562, was reactivated after 11 years. This follows a trend of ancient wallets being reactivated as BTC surged and crossed $100,000. Earlier this week, 14,000 BTC were moved after remaining inactive for seven to ten years, indicating growing interest in the cryptocurrency market.
Mubadala Investment Company, one of Abu Dhabi's sovereign wealth funds, has invested $436 million in Bitcoin ETFs. This substantial investment, encompassing shares in BlackRock's iShares Bitcoin Trust, highlights growing institutional interest in the asset in the region.
Bitcoin (BTC) is currently trading around the $97,600 price level, having registered a sharp jump to $98,662 following news of Abu Dhabi's sovereign wealth fund's investment into spot Bitcoin ETFs. However, the price has since declined, dropping to $96,901 before moving to its current level. Higher-than-expected inflation numbers have put BTC prices under intense scrutiny.
Bitcoin dominance has declined substantially, dropping to a 14-day low as altcoins and ETFs gain traction. The Securities and Exchange Commission (SEC) acknowledged Grayscale's filings for Dogecoin (DOGE) and Ripple (XRP) ETFs, triggering notable rallies in the prices of both assets. Meanwhile, spot Bitcoin ETFs saw outflows worth $650 million over the trading days spanning 
