Bitcoin ETFs And Institutions Now Control 9% Of Total Supply

Regulated spot Bitcoin ETFs (exchange-traded funds) in the United States have seen a resurgence in inflows following significant selling pressure

Bitcoin ETFs (exchange-traded funds) in the U.S. continue to see strong inflows, even as the cryptocurrency’s price stalls and faces selling pressure.

Data from SoSo Value and Ecoinmetrics shows that Bitcoin ETFs have been accumulating BTC in their holdings at a steady pace, despite a brief dip in inflows at the start of June. However, inflows have picked up again at an accelerated rate since July 1.

Specifically, on July 31, the Bitcoin spot ETF saw a net inflow of $298 million, while the Grayscale mini ETF BTC had a net inflow of $17.99 million. Additionally, the BlackRock ETF IBIT saw an inflow of $20.99 million.

According to data from Ecoinmetrics, Bitcoin ETFs have added nearly 300,000 BTC to their holdings since their approval by the U.S. Securities and Exchange Commission (SEC) in January 2023.

While the pace of accumulation has slowed compared to earlier this year, Ecoinmetrics highlights that the consistent inflows, even during periods of price stagnation, indicate persistent institutional demand for Bitcoin.

In total, institutions now control nearly 9% of the entire Bitcoin supply, with ETFs and ETF-like products accounting for approximately 5.2% of the total. Public companies hold another 1.6%, while private companies are estimated to hold at least 2% of the BTC supply.

Meanwhile, the sentiment toward Bitcoin remains largely bullish, despite the cryptocurrency’s inability to breach the $69,000 resistance level in its latest uptrend and a recent retrace of over 5% in the past 24 hours.

According to Santiment, the level of bullish commentary on Bitcoin this week was the highest since the week of May 15. This suggests that many in the crypto crowd believe that the Bitcoin price is preparing to reach the $70,000 milestone soon.

Further supporting this sentiment, crypto analyst Ali Martinez noted that top traders on the Binance exchange are buying the Bitcoin dip, with nearly 70% of them going long on BTC, based on on-chain data.

However, concerns remain regarding the cryptocurrency’s short-term price action, as if Bitcoin fails to close the day above the $64,200 mark, which corresponds to its 200-day exponential moving average (EMA), it could present challenges for the asset’s near-term price movement.

As evident on the daily BTC/USDT chart below, marked by the thick yellow line, the 200-day EMA has historically served as a strong support level for Bitcoin, but whenever the price has traded below this indicator, it has also acted as a significant resistance wall.

At the time of writing, BTC was trading at $62,830, having erased most of its gains from last month, as the cryptocurrency is up just 1.6% in the 30-day timeframe.