Data shows that the Bitcoin Spot Exchange Traded Fund (ETF)’s 14-day net inflow trend has risen to positive territory, marking the end of a period of sustained outflows.
Bitcoin Spot ETF net flows have been on the rise recently.
As highlighted by on-chain analytics firm Glassnode in a new post on X, the Bitcoin Spot ETF’s 14-day net flow trend has been rising recently. “Spot ETF” refers to an investment vehicle that allows investors to gain indirect exposure to price movements of the underlying asset.
In the United States, the Securities and Exchange Commission (SEC) approved a Bitcoin spot ETF in January 2024. Therefore, these funds have been active for more than two years now.
Spot ETFs are traded on traditional markets and therefore provide an off-chain route to BTC. Every time a trader invests in them, the fund buys on-chain tokens and stores them on their behalf. The convenience of this vehicle has made it a popular investment method among more traditional investors such as institutional investors.
Here, a chart shared by Glassnode shows the 14-day net flow trend for the Bitcoin Spot ETF so far.
As shown in the chart above, the 14-day Bitcoin Spot ETF netflow trend recently witnessed a sharp rise into positive territory. Note that Glassnode defines “net flows” as the 30-day change in total holdings of US-based funds.
Previously, the net inflow trend had fallen into negative territory, suggesting outflows were dominating the market. Not only that, but there was consistent selling pressure from ETF users as negative net flows continued. However, recent spikes in the index appear to have reversed the trend.
From the chart, we can see that Bitcoin price has risen above the $70,000 level and this indicator is witnessing continued growth. “Institutional demand remains tentative, but signs of early reaccumulation are emerging,” Glassnord said. It remains to be seen whether spot ETFs will continue on this trajectory in the near future, or if there will be another cooldown.
In other news, Bitcoin net taker volume on Binance has recently spiked, as CryptoQuant community analyst Maartunn pointed out in an X post. Net taker volume is a metric that tracks the difference between taker buy and taker sell volumes on a particular exchange (Binance in the current case).
As seen in the graph above, the 7-hour moving average (MA) of Binance Bitcoin’s net taker volume shows a significant positive spike close to $100 million, suggesting that taker buy volume is outpacing taker sell volume. “The current pump reflects the movement of November 7th and November 25th,” Martun said.
BTC price
At the time of this writing, Bitcoin is trading around $71,000, up more than 5% in the past seven days.
