Data shows that Bitcoin Spot Exchange Traded Funds (ETFs) have seen their 14-day net flow trend move into positive territory, ending a period of sustained outflows.
Bitcoin Spot ETF Netflow has been rising lately
As highlighted by on-chain analytics company Glassnode in a new after at “Spot ETFs” refer to investment vehicles that allow investors to gain indirect exposure to the price movements of an underlying asset.
In the United States, the Securities and Exchange Commission (SEC) approved spot ETFs for Bitcoin in January 2024. These funds have now been active for more than two years.
Because spot ETFs trade on traditional markets, they provide an off-chain route to BTC. Whenever a trader invests in it, the fund buys the on-chain tokens and holds them on their behalf. This convenience of the vehicles has made them a popular investment method among more traditional investors, such as institutional entities.
Here is the chart shared by Glassnode showing the 14-day netflow trend for the Bitcoin spot ETFs over their history to date:
As shown in the chart above, the 14-day Bitcoin spot ETF netflow trend has recently witnessed a sharp rise into the positive territory. Note that Glassnode defines “net flow” as the 30-day change in the combined holdings of the US-based funds.
Previously, the net flow trend had turned negative, implying that outflows were dominating the market. Moreover, negative net flows were persistent, resulting in continued selling pressure from ETF users. However, with the metric’s recent rise, the trend appears to have reversed.
The chart shows that the indicator has witnessed a continuation of growth as the Bitcoin price has risen above the $70,000 level. “Institutional demand remains hesitant, but there are early signs of reaccumulation,” Glassnode said. It now remains to be seen whether spot ETFs will follow this trajectory in the near future or whether another cooldown will occur.
In other news, Binance Bitcoin Net Taker Volume has soared recently, as CryptoQuant community analyst Maartunn noted in an after. Net Taker Volume is an indicator that tracks the difference between the taker’s buying and selling volume on a given exchange (in this case Binance).
As visible in the chart above, the 7-hour moving average (MA) of Binance Bitcoin Net Taker Volume has seen a notable positive spike near $100 million, indicating that taker buying volume has exceeded taker selling volume. “The current pump reflects the movements of November 7 and 25,” Maartunn said.
BTC price
At the time of writing, Bitcoin is trading around $71,000, up more than 5% in the past seven days.