Bitcoin ETFs On A Buying Spree, Scoop Up Nearly 300,000 BTC Since January

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As a seasoned analyst with over two decades of experience in traditional and digital asset markets, I’ve seen my fair share of market cycles, booms, and busts. The recent inflows into regulated spot Bitcoin ETFs in the United States, which now control approximately 9% of the total supply, are a testament to institutional demand for this revolutionary technology.

Bitcoin ETFs in the U.S., which are exchange-traded funds regulated by the authorities, have recently experienced an increase in investments after a period of intense selling activity that drove down the price of the leading cryptocurrency to a six-month low of $53,500 on July 5.

Bitcoin ETFs And Institutions Now Control 9% Of Total Supply

According to reports from SoSo Value and Ecoinmetrics, Bitcoin Exchange-Traded Funds (ETFs) have been steadily increasing their Bitcoin holdings. This was observed even during a temporary decrease in inflows at the beginning of June. However, since July 1st, the inflow rate has picked up speed significantly, exceeding the average recorded during the last two months.

On July 31st, the Bitcoin spot ETF attracted a total of $298 million, while the mini ETF by Grayscale had a net influx of approximately $17.99 million. Moreover, the IBIT ETF managed by BlackRock experienced an inflow of around $20.99 million on that day.

As a researcher, I’ve been tracking the growth of Bitcoin Exchange-Traded Funds (ETFs), and here’s an interesting finding: Since the U.S. Securities and Exchange Commission (SEC) approved these ETFs in January 2023, they have accumulated close to 300,000 Bitcoins in their holdings as per the data from Ecoinmetrics.

Despite a decrease in the rate at which it’s being amassed compared to earlier this year, there’s been a steady stream of incoming funds, even during times when its value remains unchanged. This enduring inflow indicates strong institutional interest in the foremost cryptocurrency, as suggested by the company.

Approximately 9% of all Bitcoins are currently managed by various institutions. This includes Exchange-Traded Funds (ETFs) and products similar to ETFs, which together make up about 5.2%, as well as public companies that hold around 1.6%. Private companies control at least 2% of the Bitcoin supply.

Sentiment Soars To Highest Level Since May

Even though Bitcoin failed to exceed the $69,000 barrier in its current rise and experienced a drop of more than 5% within the last day, there’s growing optimism among investors about the top cryptocurrency, suggesting a generally bullish outlook.

As a crypto investor, I’ve noticed a significant surge in bullish conversations about Bitcoin this week. This level of optimism hasn’t been seen since May 15, according to market insights from Santiment. It seems like many in the crypto community are anticipating that we might be nearing the $70,000 milestone for Bitcoin prices soon.

In agreement with this perspective, crypto expert Ali Martinez points out that prominent traders on the Binance platform are presently purchasing the fall in Bitcoin’s price. Data from on-chain sources indicates that around 70% of these traders have taken a long position on Bitcoin.

If Bitcoin doesn’t manage to end the day trading over $64,200 – its 200-day exponential moving average – this might indicate potential difficulties for its short-term price movement.

On the daily Bitcoin (BTC) vs US Dollar (USDT) chart displayed below, denoted by the thick yellow line, historically, the 200-day Exponential Moving Average (EMA) has functioned both as a robust support for Bitcoin and a significant barrier when its price drops below this indicator.

Currently, when I’m typing this, Bitcoin (BTC) was being transacted at approximately $62,830. This price represents a significant reduction of its gains from the previous month, as it has only increased by a modest 1.6% over the past 30 days.

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2024-08-02 04:17