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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 about 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 are still optimistic
The demand for Bitcoin and crypto-related investment funds it continued to decline on Thursdaydespite the expected end of the 43-day US government shutdown.
US spot Bitcoin (BTC) ETFs saw $866 million in net inflows Thursday, marking their second-worst day on record after February 25, 2025’s $1.14 billion. according to at Farside Investors.
This marked the second consecutive day of outflows for Bitcoin ETFs, as the end of the 43-day US government shutdown failed to revive investor appetite.
The outflow of $866 million occurred a day after the President Donald Trump has signed a government funding bill on Wednesday. The project provides funding until January 30, 2026.
The lack of demand for ETFs is causing significant concern among crypto investors, since these funds were the primary drivers of Bitcoin’s momentum in 2025, alongside Michael Saylor’s Strategy.
However, the Bitcoin bull market is still intact until the price falls below the key level of $94,000, or based on the average cost of investors who bought Bitcoin in the last six to 12 months, according to Ki Young Ju, founder and CEO of crypto intelligence platform CryptoQuant.
“Personally, I don’t think the bear cycle is confirmed unless we lose that level. I’d rather wait than jump to conclusions,” Ju wrote in a Friday X. place.
Bitfarms to clear Bitcoin mining, pivot to AI
Bitfarms said on Thursday that it will shut down its Bitcoin (BTC) mining operations during the next two years and convert to artificial intelligence and high-compute data centers as their third-quarter results report deeper losses.
The company will begin the transition by converting its 18-megawatt Bitcoin mining site in Washington to support AI, with completion expected in December 2026. It will then phase out the rest of its Bitcoin mining business throughout 2026 and 2027.
Bitfarms CEO Ben Gagnon said that converting the site to support AI “could produce more net operating income than we’ve 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 has become more competitive since miners can “go to cheaper places, riskier places, more remote places” compared to AI data centers.
It comes as Bitfarms shares fell 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 rose 156% year over year to $69 million, missing analyst estimates by more than 16%.
Asset Manager Grayscale Files for US IPOs
Grayscale Investments, an asset management company specializing in digital asset investments, filed a registration statement as part of the process to go public on the US markets.
In a Thursday filing with the US Securities and Exchange Commission, Grayscale he said plans 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 will be determined “through a direct action program” to investors in its Grayscale Bitcoin Trust ETF and Grayscale Ethereum Trust ETF.
The filing of Form S-1 was part of the process for the asset management company to go public, but it was not yet effective. Based on the SEC’s approval record, it could take 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 due return to normal operation after a 43-day government shutdown. Although companies could file documents while the agency had limited staff and capabilities, it was unlikely that the SEC would be able to move forward with approving IPOs or investment vehicles such as ETFs.
The public SEC filing happened about four months later Grayscale had filed confidentially for an IPO. According to the data in the registration statement, the asset manager reported about a decrease of $20 million in net income year on year, to $203.3 million in September 2025 from $223.7 million in September 2024.
