As a seasoned analyst with over two decades of experience in financial markets, I’ve seen my fair share of market trends and cycles. The latest development in Bitcoin (BTC) is a fascinating study of institutional demand and its relationship with price action.
Institutional investors holding Bitcoin have momentarily halted their recent purchasing wave, as the price of Bitcoin seems to be stabilizing for now.
For the first time in two weeks, outgoing transactions from U.S. spot Bitcoin exchange-traded funds (ETFs) exceeded incoming ones, according to data from sources like the UK-based investment firm Farside Investors.
Bitcoin ETF interest cools with BTC price
The current fluctuations in the price of Bitcoin are starting to affect the interest of institutions, despite the fact that the value of Bitcoin against the US dollar remains very close to its record high.
US ETF inflows flipped net negative on Oct. 22, on aggregate down $79.1 million for the day.
Yesterday’s “red” total was contributed by a single Exchange-Traded Fund (ETF), specifically the ARK 21Shares Bitcoin ETF. This particular fund faced withdrawals amounting to $134 million. The rest of the products either recorded inflows or remained idle, as Farside data indicates.
The most asset-rich ETF, the BlackRock’s iShares Bitcoin ETF (IBIT), attracted $43 million in investments – a significant decrease compared to the $329 million it managed the day before.
According to the commentator, WhalePanda, the price is currently hovering near $67,000 during their latest analysis of the activity on platform X.
It’s been since October 10th that U.S. Exchange-Traded Funds (ETFs) experienced a day where they collectively lost approximately $81.1 million in investments.
ETFs one of crypto markets’ “biggest stories”
As CryptoMoon reported, the ETFs have enjoyed a broad renaissance over the past month.
As an analyst, I’ve recently analyzed the data uploaded to X this week by Ki Young Ju, a co-founder of the onchain analytics platform CryptoQuant. The findings suggest that as of October 18th, institutional ETF ownership stands approximately at 20%.
“Thanks to spot ETFs, 1,179 institutions have joined Bitcoin’s cap table this year,” Ki added.
This year so far, European investors have invested more than $100 million in American goods, in addition to their own local market demands.
For the initial occasion, last week surpassed the $20 billion mark for net inflows, bringing the total managed assets to an all-time high of $65 billion.
In a recent study conducted alongside the largest U.S. cryptocurrency exchange, Coinbase, Glassnode, an on-chain analytics company, described the success of the ETFs as one of the most significant developments in the financial market.
In the third quarter, Bitcoin ETFs based in the U.S. experienced more than $5 billion in total investments, indicating a robust interest from institutional investors seeking a direct investment opportunity in Bitcoin.
“These ETFs have become key drivers of liquidity and accessibility, making it easier for a broader range of market participants to gain exposure to Bitcoin without the complexities of direct ownership.”
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2024-10-23 10:56