Bitcoin ETFs Dominating New Investments, says CryptoQuant
According to a report by CryptoQuant, approximately 75% of new investments in Bitcoin have come from 10 approved Bitcoin exchange-traded funds (ETFs) in the United States. This excludes Grayscale’s Bitcoin Trust (GBTC) ETF. The report also mentioned that the investment from these ETFs has increased to 2% of the total historical investment in Bitcoin in just one month, as measured by the realized market capitalization.
On February 15, Bitcoin experienced a 1.8% increase and was trading at $52,354. This followed a two-year high of $51,000 on February 14, which pushed its market capitalization above $1 trillion for the first time since November 2021. At the time of writing, the total crypto market capitalization was $1.96 trillion, with a 2.01% increase on the day.
CryptoQuant head of research, Julio Moreno, stated that the demand for ETFs was the primary driver behind Bitcoin’s price surge. The spot Bitcoin ETFs accumulated a total of 4,115 Bitcoin, amounting to approximately $215 million, according to data from Farside Investors. The majority of these inflows came from BlackRock’s iShares Bitcoin Trust ETF, which acquired 4,843 Bitcoin worth $253 million.
The research report by CryptoQuant predicts that Bitcoin will surpass $56,000 as the next significant price level, with no significant indicators suggesting a major price correction. James Wo, the founder and CEO of DFG, also attributed Bitcoin’s rise to ETF inflows, stating that spot Bitcoin ETF products now hold a cumulative value of over $10 billion. He further emphasized that BlackRock is purchasing 12 times more BTC daily than is being mined, indicating a new era of institutional adoption through spot Bitcoin ETFs.
Bitcoin may face resistance around $52,000 due to a substantial number of sell orders on Bitfinex. On-chain analyst Cole Garner noted this “brick wall” of asks up to the $52,300 mark. Despite this obstacle, the overall sentiment remains positive for Bitcoin’s price momentum.
8 thoughts on “Bitcoin ETFs Dominating New Investments, says CryptoQuant”
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Wow, so only 10 ETFs are responsible for such a huge chunk of Bitcoin investment? That seems like a risky concentration. 😕
The growth in Bitcoin’s market capitalization is truly remarkable. This is just the beginning!
The concentration of Bitcoin investment among just a handful of ETFs is a recipe for disaster. Too much power in too few hands.
This news about ETF investments in Bitcoin has renewed my optimism. The sky’s the limit!
This article has boosted my confidence in Bitcoin’s future. The potential is limitless!
This article doesn’t provide a balanced perspective on Bitcoin’s price surge. It seems biased towards ETFs.
The fact that BlackRock is purchasing 12 times more BTC daily than is being mined shows the growing institutional adoption. 🏦
The surge in demand for Bitcoin ETFs is a clear indication of growing mainstream interest in cryptocurrencies. Exciting times ahead!