Bitcoin exchange-traded merchandise globally logged internet inflows of 20,685 BTC final week, the strongest weekly consumption since July 22, in line with digital property agency K33 Analysis.
The renewed momentum lifted U.S. spot bitcoin ETFs’ mixed holdings to 1.32 million BTC, surpassing the earlier peak set on July 30.
U.S. Bitcoin ETF merchandise contributed almost 97% of final week’s 20,685 BTC ETP inflows, highlighting the surge in demand forward of the FOMC assembly.
Bitcoin ETF inflows “are usually one of many key determinants of Bitcoin’s efficiency,” André Dragosch, head of analysis for Europe at Bitwise Investments, informed Decrypt, including that the “share share of Bitcoin’s efficiency defined by modifications in ETP flows” has reached a brand new all-time excessive.
In contrast with Ethereum ETF flows, “there seems to be a ‘re-rotation’ from Ethereum again to Bitcoin when it comes to investor flows,” Dragosch mentioned, citing their knowledge. “Over the previous week, flows into Bitcoin ETFs have surpassed new provide progress by an element of 8.93 instances, a key tailwind for Bitcoin’s latest efficiency.”
Analysts at K33 agree, writing that flows have been a key driver of bitcoin’s power since ETF approvals earlier final yr, and the most recent surge indicators an acceleration in demand that might underpin additional worth help.
Within the final 30 days, buyers amassed roughly 22,853 BTC through numerous merchandise, outpacing the brand new provide of 14,056 BTC. This rising danger urge for food for Bitcoin has supported the latest restoration, Bitwise famous in its Monday report.
Constancy’s FBTC product accounted for a considerable portion of final week’s Bitcoin ETF demand, with its $843 million internet influx representing 36% of the whole $2.34 billion recorded throughout all funds and marking an 18-month excessive.
Whereas the smooth inflation knowledge and price lower expectations are key drivers, in line with Bitwise analysts, the rise in danger urge for food was additionally “underscored by a flurry of main crypto-related IPOs and bulletins final week.”
“Nonetheless, exercise stays tepid and volatility is traditionally low,” K33 analysts wrote in an investor notice on Tuesday.
They pointed to Bitcoin’s seven-day volatility, which hit yearly lows of lower than 0.7% final week earlier than rising “modestly” as costs rose above $115,000.
It marks 11 consecutive days of under 1.3% seven-day volatility, the “second-longest such stretch this yr,” K33 analysts wrote.
Bitcoin’s implied volatility, which measures the long run market expectations utilizing choices knowledge, additionally stays close to a multi-year low.
“With muted buying and selling exercise, excessive offshore leverage, and no main fast catalysts past Wednesday’s FOMC, directional indicators are combined,” they mentioned.
