Over 205,000 Bitcoins are currently stored in ETFs and other institutional products

Bitcoin (BTC) investment vehicles are seeing “huge” inflows this month. This is a new sign that the demand for BTC exposure by traders increased. Data from monitoring firm Arcane Research published this week shows that exchange-traded products (ETPs) are now managing record-high amounts of BTC.

According to Arcane data, BTC ETPs have seen a lot of interest from institutional investors both this month and last. In total includes products like the exchange-traded fund (ETF) ProShares Bitcoin Strategy, which now controls 205,000 BTC – a new record.

In just the first few days of June, more than 7,000 BTC flowed into the ETP, almost as much as the whole of May with an impressive increase of 9,765 BTC.

Zhu Su, the co-founder of asset management firm Three Arrows Capital, has a similar view:

Purpose Bitcoin ETF is the world’s first Bitcoin Spot ETF to launch. According to data from on-chain monitoring resource Coinglass, the asset management fund was worth $1.294 billion as of June 3.

However, things are still less bright for the Grayscale Bitcoin Trust (GBTC) giant.

According to Coinglass data, GBTC continues to trade near a record discount to the spot price of BTC, reaching 28.68% as of June 3. Grayscale has been trying very hard to convert GBTC to a spot Bitcoin ETF but has not been successful.

Overall, the action from institutional investors is one of the important signals to determine the next direction of Bitcoin as well as shaping the upcoming general market, as proven through many periods in the past.

For example, just in October 2021, institutional players poured up to $2 billion to buy Bitcoin, pushing their investment in BTC to a record $9 billion and the result of BTC immediately exploded, reaching ATH at $69,000.

However, the current market conditions are still not motivating enough to help BTC recover if only based on institutional push. The current results are quite dire as the BTC movement seems to have changed the structure of price movement and is “out of phase” from the stock market, so it is completely natural for Bitcoin to continue to remain in the red in June all can happen.

In terms of the on-chain metric, the supply of profitable Bitcoin has dropped to 55%, signaling a relatively negative outlook for BTC price.

At the time of writing, BTC is trading at $29,800, compared to the previous week, a marked improvement in bull sentiment as the close of the weekly candle could physically end the last 9 red candlesticks streak.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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