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CryptoQuant analyst links Bitcoin's price actions to ETF accumulation and regulatory optimism.
Photo: Navamin Studio
Key Takeaways
Spot Bitcoin ETFs now holds 5.3% of the total mined Bitcoin supply. BlackRock's iShares Bitcoin Trust exceeded $40 billion in assets with huge net inflows. <?xml encoding="UTF-8"?>Spot Bitcoin ETFs have accumulated 5.3% of all existing Bitcoin, according to CryptoQuant analyst MAC_D.
According to the analyst, holdings in physical Bitcoin ETFs increased from 629,900 BTC on January 1 to 1.05 million BTC, representing growth of 425,000 BTC. This expansion lifted ETF ownership from 3.15% to 5.33% of the total mined supply of 19.78 million BTC in 10 months.
Photo: MAC_DData tracked by MAC_D also shows a correlation between Bitcoin accumulation through spot Bitcoin ETFs and price movements, particularly during the March and November price surges.
US-listed spot Bitcoin ETF saw net inflows totaling approximately $4 billion by the end of March, Farside Investors’ data shows. March also witnessed a dramatic increase in trading volume for these ETFs, reaching $111 billion, nearly tripling from around $42 billion recorded in February, according to Bloomberg ETF analyst Eric Balchunas.
MARCH MADNESS: Bitcoin ETFs traded $111b in March, which is just about triple what they did in Feb and Jan. I added the months where only GBTC was on market for further context. I can't imagine April will be bigger but who knows.. pic.twitter.com/AJEE0mPmpW
— Eric Balchunas (@EricBalchunas) April 2, 2024
The inflows into Bitcoin ETFs coincided with an uptick in Bitcoin prices, which hit a high of above $73,000 during the period.
Similar to March, November saw a remarkable increase in Bitcoin ETF inflows and trading volumes, driven by positive market sentiment following Donald Trump’s election victory and expectations of supportive regulations for the crypto sector.
Trump’s reelection led to a surge in financial markets, including major gains in stocks and crypto assets like Bitcoin. Bitcoin established a new all-time high of above $92,000 in the aftermath of Trump’s win.
Since November 6, US spot Bitcoin ETFs have logged around $3.9 billion in net inflows. BlackRock’s iShares Bitcoin Trust (IBIT) still leads the pack, taking in over $3 billion. The fund has also exceeded $40 billion in assets following recent market activity.
This week alone, IBIT recorded over $2 billion in net inflows, while the broader US Bitcoin ETF market showed mixed performance.
These funds recorded $2.4 billion in net inflows during the first three trading days, but they experienced over $770 million in redemptions on Thursday and Friday. Overall, the funds reported net inflows of around $1.6 billion.
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