A Path Toward Bitcoin as a Reserve Asset?
The growing prominence of spot Bitcoin ETFs (exchange-traded funds) is reshaping the cryptocurrency market. CryptoQuant analyst MAC_D revealed that these funds currently control 5.33% of the total BTC mining volume, a significant jump from the 3.15% recorded in January.
This marks an increase of 425,000 BTC in ten months, highlighting the growing demand for physically-backed Bitcoin ETFs.
Bitcoin ETF accumulation drives BTC price higher
The analyst emphasized that there is a strong correlation between Bitcoin accumulation in spot ETFs and its price movements. This trend was particularly evident during the Bitcoin price surge in March and November, driven by heavy ETF inflows and positive market sentiment.
“When trading began in January, spot ETF trading volume increased by 425,000 BTC, reaching 629,900 BTC → 1,054,500 BTC. This is an increase of 2.18% in just 10 months, or 3.15% → 5.33% of the total mined volume of 19.78 million BTC . Looking at the sharp price increases in March and November, we can see that there is a strong correlation between the increase in accumulation and the price.” explained In X’s post.
In fact, in March, U.S.-listed Bitcoin ETFs saw net inflows of approximately $4 billion, pushing trading volume to $111 billion, a nearly threefold increase from February. During the same period, the price of Bitcoin surged to an all-time high above $73,777. Coin library.
Likewise, in November, following Donald Trump’s re-election and higher expectations Regulatory support for cryptocurrenciesBitcoin surges above $93,265 Binancesetting a record high valuation.
MAC_D added: “The more Bitcoin accumulates in spot ETFs, the stronger the price becomes.”
BlackRock’s iShares Bitcoin Trust (IBIT) Continues Dominate the spot ETF market. The latest data shows that the fund’s assets have exceeded US$40 billion, with net inflows of more than US$3 billion since November 6.
Although more widespread US Bitcoin ETF Market The week was mixed, with IBIT net inflows increasing by $2 billion, consolidating its lead.
Overall, U.S. Bitcoin ETF inflows reached $2.4 billion in the first half of last week. However, redemptions on Thursday and Friday cut net inflows for the week to $1.6 billion, as shown above.
Regulatory benefits drive ETF adoption
The surge in Bitcoin ETF adoption is closely tied to the changing regulatory framework. Recently, the U.S. Securities and Exchange Commission (SEC) approved Bitcoin ETF Options. This milestone coincides with recent advances in merchandise Futures trading Commission (CFTC), clears path for spot Bitcoin options trading.
Recently, the U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC) approved Environmentally conscious 7RCC Bitcoin and Carbon Credits Futures ETF. Taken together, these developments further legitimize spot Bitcoin ETFs and enhance their appeal to institutional investors. This regulatory support plays a key role in fostering trust and driving capital into the market.
Optimism surrounds favorable regulatory environment The leadership of the new U.S. administration has also further increased inflows into Bitcoin ETFs. In turn, it amplified Digital asset industry policies support expectationsfurther accelerating Bitcoin adoption through ETFs. BeInCrypto recently reported that a Bitcoin ETF is now available 60% of top U.S. hedge fund portfolios.
The role of macroeconomic factors, e.g. Fed policy and US electioncannot be ignored. As the Federal Reserve cools its monetary tightening policy, risk assets such as Bitcoin are regaining favor.
Looking ahead, analysts predict that the growing popularity of spot Bitcoin ETFs could pave the way for Bitcoin to be recognized as a new way to invest. reserve assets. If the U.S. government adopts this trend, ETF inflows are expected to increase further, cementing Bitcoin’s place in global finance.
At the same time, the share of Bitcoin held by spot ETFs continues to increase, with wider implications for the crypto market. By controlling more than 5% of the Bitcoin supply, these funds stabilize liquidity while potentially reducing market volatility volatility.
Still, there are concerns about institutional control of Bitcoin, which would go against the pioneering cryptocurrency’s original decentralized ethos.
“Doesn’t this defeat the whole purpose of ‘decentralization’? BlackRock will be the largest holder, it doesn’t get more centralized than that,” one X user joke.
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