- Bitcoin’s Fund Holdings indicator spiked to its highest value in two months.
- Bitcoin Open Interest rose to its highest level since April 2022.
Excitement surrounding the possible approval of six odd spot Bitcoin [BTC] exchange-traded fund (ETF) applications began to reach a fever pitch.
How much are 1,10,100 BTCs worth today?
The king coin retained its gains from last week’s fake news-fueled rally, settling around the $34,000 level at time of publication. CoinMarketCap showed.
Indirect investments in Bitcoin are rising
The enthusiasm resulted in a notable increase in the number of people seeking to increase their exposure to Bitcoin through indirect investments. According to an analysis company in the chain CryptoQuantBitcoin’s Fund Holdings indicator spiked to its highest value in two months.
Source: CryptoQuant
For the uninitiated, Fund Holdings tracks the total number of coins held by indirect investment vehicles such as trusts, funds and ETFs.
Unlike direct investments, which investors own, indirect investments pool investor money to buy and sell assets. As a result, even if the investor has no direct exposure to the asset, he buys into shares that normally respond to the value of the underlying asset.
As shown in the chart above, the index soared in June when the world’s largest asset manager BlackRock filed for a spot Bitcoin ETF for its US clients.
However, subsequent delays in approval by the US Securities and Exchange Commission (SEC) began to dampen investor sentiment, causing the index to fall sharply.
However, developments over the past week led to a dramatic shift in sentiment. The total number of Bitcoins in such investment vehicles increased from 683.5k to 691,000.
CryptoQuant also noted that the market’s next directions would depend heavily on SEC’s decision on the pending spot ETF filings.
Bitcoin Sees a Jump in OI, But…
The increased optimism also spread to the derivatives market. According to Coinglass, the Open Interest (OI) in Bitcoin futures has risen to $15.61 billion at the time of writing, the highest since the bear market roiled the markets in May 2022.
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OI has been on a steady uptrend over the past ten days, complimenting a rise in Bitcoin’s market value. Scenarios like these are indicative of new money entering the market.
Source: Coinglass
Surprisingly, the number of short positions opened for Bitcoin exceeded longs in the last few hours. The Longs/Shorts ratio was well below 1 at the time of writing.
Source: Coinglass