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Home Bitcoin

4 weeks of Bitcoin ETF growth explained – A closer look at $70K

April 8, 2024
in Bitcoin
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4 weeks of Bitcoin ETF growth explained – A closer look at $70K
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  • ETF volumes for Bitcoin continued to grow despite market volatility.
  • BTC’s price surged, along with its velocity.

Following Bitcoin’s [BTC] surge to the $70,000 mark, speculation regarding an imminent correction intensified.

Despite the ongoing battle between Bitcoin bulls and bears in the cryptocurrency sphere, the sentiment in traditional financial markets remained evident.

ETF volumes on the rise

Based on Santiment’s data, Bitcoin ETF volumes have shown no signs of slowing down, even four weeks after BTC reached its All-Time High.

Across assets like GBTC, IBIT, FBTC, ARKB, BTCO, BITB, and HODL, trader activity remained elevated compared to the turning point observed in late February, following a surge in individual trading activity that has persisted since then.

It’s highly probable that this heightened activity will persist leading up to the April halving. This sustained interest, even after Bitcoin’s all-time high, suggests strong investor appetite.

This translated to increased demand for Bitcoin, as ETFs hold actual Bitcoin to back their shares. But while this could potentially drive the price of Bitcoin up, it’s not without its risks.

High volume can also lead to significant price swings if there are sudden changes in investor sentiment within the ETF market.

On the positive side, the popularity of Bitcoin ETFs could bring Bitcoin to a wider audience and further legitimize it within the traditional financial world.

Source: Santiment

However, it wasn’t all bullish news for BTC. Defiance recently filed for an ETF that is short 2x of MicroStrategy.

MicroStrategy, the company run by Michael Saylor, has been notorious for being extremely bullish on BTC. The firm has accumulated Bitcoin at various price points at different market cycles.

See also  Bitcoin dominance nears 60%: Will BTC help altcoins boost as well?

The creation of this ETF suggests that not everyone on Wall Street shares the same positive outlook on BTC.

Source: SEC

Even though MSTR hasn’t seen similar growth as BTC, both these assets have shown some level of correlation over the last six months.

Source: Portfolios Lab

Source: Portfolios Lab


Read Bitcoin’s [BTC] Price Prediction 2024-25


State of Bitcoin

At press time, BTC was trading at $72,029.22 and its price had grown by 3.98% in the last 24 hours.  The velocity at which BTC was trading at had also grown during this period.

The rising velocity of BTC indicated that the frequency with which BTC was trading had also grown alongside its price in the last few days.

Source: Santiment

Previous: March 2024 Report: Bitcoin vs. inflation, Ethereum NFTs, and April forecast
Next: XRP’s climb back to $0.60 explained – Ripple effect?

READ ALSO

Bitcoin nears $91K as buying pressure soars, but challenges emerge

Spot Bitcoin ETF Options – How U.S exposure is set to soar after CFTC’s notice

  • ETF volumes for Bitcoin continued to grow despite market volatility.
  • BTC’s price surged, along with its velocity.

Following Bitcoin’s [BTC] surge to the $70,000 mark, speculation regarding an imminent correction intensified.

Despite the ongoing battle between Bitcoin bulls and bears in the cryptocurrency sphere, the sentiment in traditional financial markets remained evident.

ETF volumes on the rise

Based on Santiment’s data, Bitcoin ETF volumes have shown no signs of slowing down, even four weeks after BTC reached its All-Time High.

Across assets like GBTC, IBIT, FBTC, ARKB, BTCO, BITB, and HODL, trader activity remained elevated compared to the turning point observed in late February, following a surge in individual trading activity that has persisted since then.

See also  How BlackRock's Bitcoin ETF surged amid a BTC price drop

It’s highly probable that this heightened activity will persist leading up to the April halving. This sustained interest, even after Bitcoin’s all-time high, suggests strong investor appetite.

This translated to increased demand for Bitcoin, as ETFs hold actual Bitcoin to back their shares. But while this could potentially drive the price of Bitcoin up, it’s not without its risks.

High volume can also lead to significant price swings if there are sudden changes in investor sentiment within the ETF market.

On the positive side, the popularity of Bitcoin ETFs could bring Bitcoin to a wider audience and further legitimize it within the traditional financial world.

Source: Santiment

However, it wasn’t all bullish news for BTC. Defiance recently filed for an ETF that is short 2x of MicroStrategy.

MicroStrategy, the company run by Michael Saylor, has been notorious for being extremely bullish on BTC. The firm has accumulated Bitcoin at various price points at different market cycles.

The creation of this ETF suggests that not everyone on Wall Street shares the same positive outlook on BTC.

Source: SEC

Even though MSTR hasn’t seen similar growth as BTC, both these assets have shown some level of correlation over the last six months.

Source: Portfolios Lab

Source: Portfolios Lab


Read Bitcoin’s [BTC] Price Prediction 2024-25


State of Bitcoin

At press time, BTC was trading at $72,029.22 and its price had grown by 3.98% in the last 24 hours.  The velocity at which BTC was trading at had also grown during this period.

The rising velocity of BTC indicated that the frequency with which BTC was trading had also grown alongside its price in the last few days.

Source: Santiment

Previous: March 2024 Report: Bitcoin vs. inflation, Ethereum NFTs, and April forecast
Next: XRP’s climb back to $0.60 explained – Ripple effect?
Tags: 70KBitcoinCloserETFExplainedGrowthweeks

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Ethereum RPG ‘Kuroro Wilds’ Launches Play-to-Airdrop on Ronin With 10M KURO Rewards

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Ethereum Price Faces Rejection, Is This A Fresh Bearish Signal?

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