Today in crypto, US spot Bitcoin exchange-traded funds (ETFs) saw $866 million in outflows as the US government shutdown ended, pushing BTC to a six-month low and raising concerns over market structure and investor demand. Elsewhere, Bitfarms announced its exit from Bitcoin mining and pivot to AI, and Grayscale filed to go public in the US.
Bitcoin ETFs bleed $866 million in second-worst day on record, but some analysts still bullish
Demand for Bitcoin and crypto-linked investment funds continued to decline Thursday, despite the long-awaited end of the 43-day US government shutdown.
US spot Bitcoin (BTC) ETFs saw $866 million in net outflows on Thursday, marking their second-worst day on record after the $1.14 billion daily outflows on Feb. 25, 2025, according to Farside Investors.
This marked the second consecutive day of outflows for the Bitcoin ETFs, as the end of the 43-day US government shutdown failed to reignite investor appetite.
The $866 million outflows occurred a day after President Donald Trump signed a government funding bill on Wednesday. The bill provides funding until Jan. 30, 2026.
The lack of ETF demand is causing significant concerns among crypto investors, as these funds were the primary drivers of Bitcoin’s momentum in 2025, alongside Michael Saylor’s Strategy.
However, Bitcoin’s bull market is still intact until the price falls below the key $94,000 level, or the average cost basis of investors who bought Bitcoin in the past six to 12 months, according to Ki Young Ju, founder and CEO of crypto intelligence platform CryptoQuant.
“Personally, I do not think the bear cycle is confirmed unless we lose that level. I would rather wait than jump to conclusions,” wrote Ju in a Friday X post.
Bitfarms to wind down Bitcoin mining, pivot to AI
Bitfarms said on Thursday it will shutter its Bitcoin (BTC) mining operations over the next two years and convert them to artificial intelligence and high-compute data centers as its third-quarter results reported deeper losses.
The company will start the transition by converting its 18-megawatt Bitcoin mining site in Washington to support AI, with completion expected in December 2026. It will then wind down the rest of its Bitcoin mining business throughout 2026 and 2027.
Bitfarms CEO Ben Gagnon said the conversion of the site to support AI “could potentially produce more net operating income than we have ever generated with Bitcoin mining.”
He told investors on the company’s Q3 earnings call that “the best opportunity for most miners in the United States, really, is this transition to HPC and AI” and that Bitcoin mining is becoming more competitive as miners can “go to cheaper locations, higher-risk locations, more remote locations” compared to AI data centers.
It comes as Bitfarms’ stock dropped nearly 18% on Thursday after reporting a net loss of $46 million in Q3 compared to losses of $24 million a year ago. The company’s revenue increased 156% year-on-year to $69 million, missing analyst estimates by over 16%.
Asset manager Grayscale files for US IPO
Grayscale Investments, an asset management company specializing in digital asset investments, has filed a registration statement as part of the process for going public on US markets.
In a Thursday filing with the US Securities and Exchange Commission, Grayscale said it intended to list shares of its Class A common stock on the New York Stock Exchange under the ticker symbol GRAY. The company said the initial price would be determined “through a directed share program” to investors in its Grayscale Bitcoin Trust ETF and Grayscale Ethereum Trust ETF.
The Form S-1 filing was part of the process for the asset management company to go public, but it was not yet effective. Based on the SEC’s record of approvals, it could take anywhere from weeks to months before the registration statement becomes effective and the company prepares to list its shares.
Grayscale’s filing came on the first day the SEC is expected to return to normal operations after a 43-day government shutdown. Though companies were able to submit filings while the agency had limited staff and capabilities, it was unlikely that the SEC would have been able to move forward with approvals of IPOs or investment vehicles like ETFs.
The public SEC filing occurred about four months after Grayscale had filed confidentially for an IPO. According to data in the registration statement, the asset manager reported about a $20 million decrease in net income year-over-year, to $203.3 million in September 2025 from $223.7 million in September 2024.
