bitcoin prices are holding steady above the $66,000 support as of writing on October 25. While sentiment is high, the coin is still trending below the psychological round of $70,000. It still has to get rid of sellers by early October.
bitcoin Spot ETF Demand Soars to 6-Month High
However, looking at emerging bitcoin ETF trends, this is about to change. the latest x.com/ki_young_ju/status/1849748321566589058″ target=”_blank” rel=”noopener nofollow”>analysis by Ki Young Ju of CryptoQuant on October 25 shows that demand for these crypto derivative products has increased in the last 30 days.
The rally has seen demand for spot bitcoin ETFs in the United States hit a six-month high, attracting over 64,900 btc in net flows.
Net flows, which consider total inflows and outflows during the testing period, can be used to measure institutional interest. Every rise, coupled specifically with rising inflows, means more institutions are getting exposure to digital gold. The more institutional interest increases, the more likely btc is to skyrocket.
Soso Value Data btc-spot” target=”_blank” rel=”noopener nofollow”>sample that issuers in the United States collectively manage more than $66 billion. On October 24, investors purchased over $188 million worth of btc through its issuers. So far, BlackRock, through its IBIT, is the largest issuer and controls more than $27 billion in btc.
In recent months, Grayscale's GBTC has seen massive outflows. On October 24, over $7 million worth of btc was redeemed from GBTC.
Will institutions push btc above $70,000?
Hopes are high that the approval of spot bitcoin ETFs in the United States has paved the way for institutions to boost prices. Before that, most found exposure to btc through Approved Trusts, some offered by Grayscale.
Meanwhile, some institutions bought MicroStrategy shares because its performance reflected btc, given the public company's heavy investment in the digital asset.
According bitcoin Treasury BondsMicroStrategy holds more than 250,000 btc, the most of any public company in the United States and worldwide. Over the years since its strategy of accumulating btc regularly, its stock, MSTR, has outperformed major US stocks and indices.
Only time will tell if btc bulls have what it takes to break above $70,000. The round number marks the highs for September. If bitcoin takes advantage of the rejection at lower prices on October 24, it could find the necessary momentum to define the short-term trajectory.
A firm close above this psychological resistance line paves the way for a retest of $72,000 and all-time highs.
Featured image from Canva, TradingView chart
