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Home Bitcoin

What Bitcoin ETFs and their record volumes tell us about HODLers

May 17, 2024
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What Bitcoin ETFs and their record volumes tell us about HODLers
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  • ETF volumes surged as BTC’s price appreciated on the charts
  • Number of long term holders declined though, despite recent hike in price

Bitcoin [BTC]’s recent push past the $65,000-level has inspired massive optimism among traders and investors alike. This, despite the minor correction that followed soon after. However, it isn’t just the crypto-market where BTC is making waves. In fact, Wall Street is pretty keen on Bitcoin as well.

Interest in ETFs grows

According to Santiment, seven major Bitcoin ETFs together recorded a trading volume of $5.65 billion, marking their highest volume since 24 March.

On 16 May, the net inflows of U.S Bitcoin spot ETFs amounted to $257 million, indicating significant investor activity. Notably, Grayscale’s ETF GBTC saw single-day net inflows of $4.6382 million. Similarly, BlackRock’s ETF IBIT recorded net inflows of $93.7004 million, while Fidelity’s ETF FBTC registered net inflows of $67.0829 million on the same day.

Source: sosovalue

The interest showcased by institutional investors from the traditional finance world can help inject massive amounts of liquidity into the Bitcoin market.

However, large investors in the crypto-space, known as whales, did not show similar levels of interest in BTC. AMBCrypto’s examination of Santiment’s data revealed that addresses holding 10-10,000 BTC slowed down their accumulation. On the contrary, retail interest has been on the rise. Investors holding anywhere between 0.001 to 1 BTC were seen accumulating BTC at a high rate.

Accumulation of BTC by retail investors could be a positive for BTC in the long run as it will help make the overall network more decentralized.

Source: Santiment

How are holders doing?

At press time, BTC was trading at $66,314.84, with its price up by 0.47% in the last 24 hours. Due to the recent uptick in price, the MVRV ratio for BTC grew significantly over the last few days. This indicated that most holders were starting to get profitable. As the price of BTC hikes further, there is a high chance of profit taking that could take place in the future.

See also  Bitcoin HODLers confident despite market decline: Will this help BTC's price?

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


Despite the surge in price, however, there was a concerning trend that emerged over the last few weeks. The Long/Short difference for BTC declined significantly, indicating that the number of long-term holders accumulating BTC fell and the number of short-term holders grew.

Short term holders are much more likely to respond impulsively to market fluctuations, having a negative impact on BTC’s price.

Source: Santiment

Next: Notcoin’s [NOT] ‘rocky’ launch – How a $1 billion start ended with a major sell-off

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 surged as BTC’s price appreciated on the charts
  • Number of long term holders declined though, despite recent hike in price

Bitcoin [BTC]’s recent push past the $65,000-level has inspired massive optimism among traders and investors alike. This, despite the minor correction that followed soon after. However, it isn’t just the crypto-market where BTC is making waves. In fact, Wall Street is pretty keen on Bitcoin as well.

Interest in ETFs grows

According to Santiment, seven major Bitcoin ETFs together recorded a trading volume of $5.65 billion, marking their highest volume since 24 March.

On 16 May, the net inflows of U.S Bitcoin spot ETFs amounted to $257 million, indicating significant investor activity. Notably, Grayscale’s ETF GBTC saw single-day net inflows of $4.6382 million. Similarly, BlackRock’s ETF IBIT recorded net inflows of $93.7004 million, while Fidelity’s ETF FBTC registered net inflows of $67.0829 million on the same day.

Source: sosovalue

The interest showcased by institutional investors from the traditional finance world can help inject massive amounts of liquidity into the Bitcoin market.

See also  Bitcoin price rises to $43K: Does BTC's prediction hold now?

However, large investors in the crypto-space, known as whales, did not show similar levels of interest in BTC. AMBCrypto’s examination of Santiment’s data revealed that addresses holding 10-10,000 BTC slowed down their accumulation. On the contrary, retail interest has been on the rise. Investors holding anywhere between 0.001 to 1 BTC were seen accumulating BTC at a high rate.

Accumulation of BTC by retail investors could be a positive for BTC in the long run as it will help make the overall network more decentralized.

Source: Santiment

How are holders doing?

At press time, BTC was trading at $66,314.84, with its price up by 0.47% in the last 24 hours. Due to the recent uptick in price, the MVRV ratio for BTC grew significantly over the last few days. This indicated that most holders were starting to get profitable. As the price of BTC hikes further, there is a high chance of profit taking that could take place in the future.


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


Despite the surge in price, however, there was a concerning trend that emerged over the last few weeks. The Long/Short difference for BTC declined significantly, indicating that the number of long-term holders accumulating BTC fell and the number of short-term holders grew.

Short term holders are much more likely to respond impulsively to market fluctuations, having a negative impact on BTC’s price.

Source: Santiment

Next: Notcoin’s [NOT] ‘rocky’ launch – How a $1 billion start ended with a major sell-off
Tags: BitcoinETFsHODLersrecordVolumes

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