Bitcoin ETF Inflows Turn Positive, Yet Demand Remains Low: Glassnode Insight

tiền điện tử On-chain analytics firm Glassnode has highlighted that the inflows into Bitcoin spot exchange-traded funds (ETFs) are not matching the vigor observed during previous rallies this cycle.

In a recent update shared on X, Glassnode examined the latest developments regarding the inflows of spot ETFs. These investment products enable investors to gain exposure to Bitcoin's price movements without directly owning the cryptocurrency.

The US Securities and Exchange Commission (SEC) greenlit Bitcoin spot ETFs in January 2024. When a trader puts money into one of these ETFs, the fund buys and retains Bitcoin on their behalf. Consequently, investors in these ETFs do not deal with the blockchain directly, which includes managing exchanges or wallets.

This user-friendly approach has made spot ETFs a favored option for traditional investors looking to engage with cryptocurrencies. Institutional investors particularly favor these regulated products for their accessibility and security.

Monitoring the net inflows related to spot ETFs is crucial, as it can provide insights into institutional sentiment toward Bitcoin.

Below is the chart shared by Glassnode illustrating the changes in Bitcoin spot ETF net inflows over the past year.

Bitcoin ETF Inflows Turn Positive, Yet Demand Remains Low: Glassnode Insight

The chart indicates that Bitcoin spot ETF net inflows dipped into negative territory earlier this month, suggesting that capital was exiting these funds. This outflow phase coincided with Bitcoin's price dropping to around $104,000.

However, following this price decline, a recovery has been observed, leading to renewed inflows into the spot ETFs. This suggests a resurgence in demand for Bitcoin.

Bitcoin: The Digital Gold That's Changing Everything Despite this upward movement, the current net inflow remains below 1,000 BTC per day. In contrast, during previous significant rallies in this cycle, inflows were typically above 2,500 BTC per day. Glassnode concluded, "Demand is recovering, but not at the intensity of recent rallies."

Beyond just the spot ETF netflows, additional indicators hint at subdued institutional demand. CryptoQuant community analyst Maartunn noted in a post on X that the Coinbase Premium Gap is also showing relatively neutral readings at the moment.

The Coinbase Premium Gap measures the disparity between Bitcoin prices on Coinbase (USD pair) and those on Binance (USDT pair). As Coinbase is the preferred exchange for institutional investors in the U.S. and serves as the custodian for these spot ETFs, this metric is particularly telling.

https://coinzn.org/ A positive reading on this metric indicates that Coinbase users are exerting more buying pressure than their Binance counterparts. Recent rallies have typically shown such trends, but currently, the metric remains at neutral levels.

As of this writing, Bitcoin is trading at a price point that reflects the current market dynamics.