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Home Bitcoin

Bitcoin ETFs hit new record: Will BTC benefit from the surge?

February 21, 2024
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Bitcoin ETFs hit new record: Will BTC benefit from the surge?
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  • Bitcoin ETF’s volume hit $6.94 billion in inflows and volume.
  • Retail investors are less exposed to BTC compared to 2021.

Spot Bitcoin [BTC] ETFs experienced an explosive spike in daily volume and inflows on the 20th of February, AMBCrypto confirmed.

According to crypto analysis tool Santiment, there was a combined volume of $6.94 billion among seven of the ETFs. This also marked the highest daily volume since the SEC approved the ETFs in January.

The query result from the on-chain platform showed that Bitwise [BITB], Fidelity [FBTC], BlackRock [IBIT], and Ark 21Share [ARKB] were part of the issuer involved in the surge.

Others included Invesco Galaxy [BTCO], vanEck [HODL], and Grayscale [GBTC].


Chart showing how Bitcoin ETF inflows and volume hit a record high

Source: Santiment

High ETF interest isn’t a sign of a price increase

This surge was a restatement to the increasing investor exposure to Bitcoin. For example, Eric Balchunas posted how HODL’s volume jumped 14x its usual average.

According to Balchunas, who is a senior analyst at Bloomberg, the trades happened between 32,000 individuals.

Though unconfirmed, the number of participants suggests that VanECK might have extended its offering to other platforms.


A post on X showing how VanEck Bitcoin ETF volume has been increasing

Source: X

While high ETF activity shows rising interest, it might not affect BTC’s demand and supply curve. This is because investors are not directly buying and storing the coin.

So, Bitcoin’s price has not been affected. At press time, BTC changed hands at $51,685.

For Bitcoin’s price to increase, retail demand has to be incredibly high. But it seems that has not been the case.

For instance, AMBCrypto checked Google Trends data regarding the search for the coin. According to the results we got, Bitcoin search worldwide had a reading of 29.

See also  Is Satoshi Nakamoto finally revealed? What HBO documentary says…

Though this was an increase, it did not seem enough to trigger high demand for BTC.

Also, the value infers that BTC was less popular among retail investors when compared with the reading between January and November 2021.


Low search for Bitcoin on Google Trends indicating low retail interest

Source: Google Trends

BTC may slip before it pumps

It is also noteworthy to mention that it was during the said period that BTC hit its All-Time High (ATH). As such, one can assume that the coin has enormous potential to surpass $69,000 this cycle.

If institutions continue to dominate the volume over the next few months, BTC might find it hard to close in $69,000.

However, a surge in the creation of new addresses and buying pressure might change the state of things.

From a technical point of view, the long-term horizon looks promising for Bitcoin. For instance, the 50 EMA (blue) had crossed over the 200 EMA (yellow). This suggests a bullish bias for the cryptocurrency.


Read Bitcoin’s [BTC] Price Prediction 2024-2025


The Accumulation/Distribution (A/D) was another indicator fueling the prediction. At press time, the A/D increased, suggesting that buying pressure has been increasing.


Bitcoin price analysis on the 4-hour timeframe

Source: TradingView

However, BTC might undergo a distribution period. If this is the case, the price might shrink below $51,000. But in some months, it is likely for the price to hit an astronomical high.

Next: Why Ethereum’s rise to $3K was short-lived

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


  • Bitcoin ETF’s volume hit $6.94 billion in inflows and volume.
  • Retail investors are less exposed to BTC compared to 2021.

Spot Bitcoin [BTC] ETFs experienced an explosive spike in daily volume and inflows on the 20th of February, AMBCrypto confirmed.

See also  Deepseek Mania Triggers Widespread Losses for Publicly Traded Crypto Firms and Bitcoin Miners

According to crypto analysis tool Santiment, there was a combined volume of $6.94 billion among seven of the ETFs. This also marked the highest daily volume since the SEC approved the ETFs in January.

The query result from the on-chain platform showed that Bitwise [BITB], Fidelity [FBTC], BlackRock [IBIT], and Ark 21Share [ARKB] were part of the issuer involved in the surge.

Others included Invesco Galaxy [BTCO], vanEck [HODL], and Grayscale [GBTC].


Chart showing how Bitcoin ETF inflows and volume hit a record high

Source: Santiment

High ETF interest isn’t a sign of a price increase

This surge was a restatement to the increasing investor exposure to Bitcoin. For example, Eric Balchunas posted how HODL’s volume jumped 14x its usual average.

According to Balchunas, who is a senior analyst at Bloomberg, the trades happened between 32,000 individuals.

Though unconfirmed, the number of participants suggests that VanECK might have extended its offering to other platforms.


A post on X showing how VanEck Bitcoin ETF volume has been increasing

Source: X

While high ETF activity shows rising interest, it might not affect BTC’s demand and supply curve. This is because investors are not directly buying and storing the coin.

So, Bitcoin’s price has not been affected. At press time, BTC changed hands at $51,685.

For Bitcoin’s price to increase, retail demand has to be incredibly high. But it seems that has not been the case.

For instance, AMBCrypto checked Google Trends data regarding the search for the coin. According to the results we got, Bitcoin search worldwide had a reading of 29.

Though this was an increase, it did not seem enough to trigger high demand for BTC.

Also, the value infers that BTC was less popular among retail investors when compared with the reading between January and November 2021.


Low search for Bitcoin on Google Trends indicating low retail interest

Source: Google Trends

BTC may slip before it pumps

It is also noteworthy to mention that it was during the said period that BTC hit its All-Time High (ATH). As such, one can assume that the coin has enormous potential to surpass $69,000 this cycle.

See also  Will USDT's 70% dominance affect Bitcoin, Ethereum? Assessing...

If institutions continue to dominate the volume over the next few months, BTC might find it hard to close in $69,000.

However, a surge in the creation of new addresses and buying pressure might change the state of things.

From a technical point of view, the long-term horizon looks promising for Bitcoin. For instance, the 50 EMA (blue) had crossed over the 200 EMA (yellow). This suggests a bullish bias for the cryptocurrency.


Read Bitcoin’s [BTC] Price Prediction 2024-2025


The Accumulation/Distribution (A/D) was another indicator fueling the prediction. At press time, the A/D increased, suggesting that buying pressure has been increasing.


Bitcoin price analysis on the 4-hour timeframe

Source: TradingView

However, BTC might undergo a distribution period. If this is the case, the price might shrink below $51,000. But in some months, it is likely for the price to hit an astronomical high.

Next: Why Ethereum’s rise to $3K was short-lived
Tags: benefitBitcoinBTCETFshitrecordSurge

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UK risks regulating NFTs the wrong way, says Mintable CEO

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Capturing the Growth of Asset-Backed Finance via Blockchain-Enabled Opportunities

Capturing the Growth of Asset-Backed Finance via Blockchain-Enabled Opportunities

August 3, 2024
Ethereum crosses $3.2K as L2 crosses new milestone: What now?

Ethereum crosses $3.2K as L2 crosses new milestone: What now?

May 6, 2024

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Arbitrum leads Ethereum L2s in key areas: Will ARB’s price follow?

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