A leading analytics firm says BlackRock’s Bitcoin (BTC) spot exchange-traded fund (ETF) application is driving US-based entities to accumulate the crypto king.
Glasnode notes that the share of Bitcoin inventory held and traded by US entities has seen a significant increase since BlackRock, the world’s largest investment company with more than $10 trillion in assets under management, first archived for a BTC ETF last month.
No US Bitcoin spot ETF application has ever been approved to date, despite submissions from Grayscale, VanEck and Cathie Wood’s ARK Invest, although the US Securities and Exchange Commission (SEC) did green light the launch of the first Bitcoin futures ETFs in October 2021.
Glassnode shares a chart that shows an increase in the supply of BTC held or traded by US investors, while Asia-based market participants appear to be splitting their Bitcoin stacks.
“Following the announcement of the Blackrock Bitcoin ETF solicitation on June 15, the share of Bitcoin supply held/traded by US entities has seen a notable increase, marking a potential tipping point in supply dominance if the trend continues.”
The analytics company too notes that approximately 560,000 Bitcoins owned by short-term holders (STHs), representing 21% of the total STH supply, were purchased at a price close to the current value of BTC.
According to Glassnode, the condition suggests that more short-term holders could see their positions in the red if Bitcoin goes through a mild corrective phase.
“Note that ~560,000 STH coins (21%) are close to the spot price, suggesting that a non-trivial portion of the STH supply has increased sensitivity to price action.”
At the time of writing, Bitcoin is worth $30,556.
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