A massive surge in crypto exchange flows suggests that institutions could be preparing for the possible adoption of Bitcoin (BTC) exchange-traded funds (ETFs) in the spot market, according to market intelligence firm Glassnode.
Glassnode notes in a new one analysis report that the 30-day simple moving average (SMA) of Bitcoin flows into and out of exchanges grew from $930 million from the start of the year to over $3 billion at the time of writing, an increase of 220%.
“Looking at this from the on-chain volume domain, we can see that YTD (year-to-date) flows into and out of exchanges have grown significantly from $930 million to over $3 billion (+220%).
This underlines a growing interest among investors to trade, accumulate, speculate and otherwise use exchanges for their services.”
The analytics firm also notes that the average size of Bitcoin deposits on exchanges has grown significantly this year.
“With such a large increase in exchange volumes, an interesting observation emerges from the analysis of the average size of deposits on the exchanges. This metric has seen a non-trivial rally, rising just above the previous all-time high of $30,000 per deposit.
This shows that foreign exchange deposits are currently dominated by investors moving ever larger sums of money. This may be a sign of growing institutional interest as key decision dates for ETFs approach in January 2024.”
Bloomberg ETF analyst James Seyffart recently speculated that the U.S. Securities and Exchange Commission (SEC) is gearing up to approve a slew of bids for a spot BTC-listed fund in early January.
Bitcoin is trading at $43,974 at the time of writing, up more than 16% in the past seven days.
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