Despite active on-chain accumulation, demand for bitcoin exchange-traded funds (ETFs) in the United States appears to have plateaued over the past four weeks, according to Ki Young Ju, founder of CryptoQuant, an on-chain analytics platform. This evaluation, the founder twitter.com/ki_young_ju/status/1780050419781345413″ target=”_blank”>gradesIt is even when excluding ETF settlement transactions.
<img class="size-full wp-image-294802" src="https://technicalterrence.com/wp-content/uploads/2024/04/Bitcoin-Spot-ETF-Demand-Stagnates-for-4-Consecutive-Weeks-–.jpg" alt="Network Flows Towards Spot bitcoin ETFs | Source: x Analyst” srcset=”https://technicalterrence.com/wp-content/uploads/2024/04/Bitcoin-Spot-ETF-Demand-Stagnates-for-4-Consecutive-Weeks-–.jpg?w=1392 1392w, https://technicalterrence.com/wp-content/uploads/2024/04/Bitcoin-Spot-ETF-Demand-Stagnates-for-4-Consecutive-Weeks-–.jpg?w=610 610w, https://technicalterrence.com/wp-content/uploads/2024/04/Bitcoin-Spot-ETF-Demand-Stagnates-for-4-Consecutive-Weeks-–.jpg?w=768 768w, https://technicalterrence.com/wp-content/uploads/2024/04/Bitcoin-Spot-ETF-Demand-Stagnates-for-4-Consecutive-Weeks-–.jpg?w=959 959w, https://technicalterrence.com/wp-content/uploads/2024/04/Bitcoin-Spot-ETF-Demand-Stagnates-for-4-Consecutive-Weeks-–.jpg?w=750 750w, https://technicalterrence.com/wp-content/uploads/2024/04/Bitcoin-Spot-ETF-Demand-Stagnates-for-4-Consecutive-Weeks-–.jpg?w=1140 1140w” />
Spot demand for bitcoin ETFs falls in the United States
bitcoin spot ETFs are crypto derivative products that allow investors, primarily regulated institutions and whales, to gain exposure to the world's most valuable currency while saving themselves the hassle of custody. Major spot ETF issuers such as Bitwise and Proshares use a regulated custodian to protect all btc backing all minted shares in circulation.
However, as parallel data shows, demand has slowed over the past month of trading, with all but one, BlackRock's US-based spot bitcoin fund iShares bitcoin Trust (IBIT), recording no inflows into the markets. last two days.
According to Farside dataIBIT recorded $73.4 million on April 15. However, this figure represented a drop of nearly 30% compared to the $111 million recorded the previous day, April 14. At the same time, the other eight ETFs, excluding GBTC, which is being unwound and converted into a spot ETF, recorded no capital inflows during the same period.
On April 15, Lookonchain data twitter.com/lookonchain/status/1779922322423710128″ target=”_blank”>sample that GBTC recorded $115 million in outflows, while the nine spot bitcoin ETFs also declined by approximately $25 million.
<img class="size-full wp-image-294807" src="https://technicalterrence.com/wp-content/uploads/2024/04/Bitcoin-Spot-ETF-Demand-Stagnates-for-4-Consecutive-Weeks-–.png" alt="bitcoin ETF Spot Flows | Source: Lookonchain via x” srcset=”https://technicalterrence.com/wp-content/uploads/2024/04/Bitcoin-Spot-ETF-Demand-Stagnates-for-4-Consecutive-Weeks-–.png?w=2645 2645w, https://technicalterrence.com/wp-content/uploads/2024/04/Bitcoin-Spot-ETF-Demand-Stagnates-for-4-Consecutive-Weeks-–.png?w=560 560w, https://technicalterrence.com/wp-content/uploads/2024/04/Bitcoin-Spot-ETF-Demand-Stagnates-for-4-Consecutive-Weeks-–.png?w=768 768w, https://technicalterrence.com/wp-content/uploads/2024/04/Bitcoin-Spot-ETF-Demand-Stagnates-for-4-Consecutive-Weeks-–.png?w=879 879w, https://technicalterrence.com/wp-content/uploads/2024/04/Bitcoin-Spot-ETF-Demand-Stagnates-for-4-Consecutive-Weeks-–.png?w=1536 1536w, https://technicalterrence.com/wp-content/uploads/2024/04/Bitcoin-Spot-ETF-Demand-Stagnates-for-4-Consecutive-Weeks-–.png?w=2048 2048w, https://technicalterrence.com/wp-content/uploads/2024/04/Bitcoin-Spot-ETF-Demand-Stagnates-for-4-Consecutive-Weeks-–.png?w=750 750w, https://technicalterrence.com/wp-content/uploads/2024/04/Bitcoin-Spot-ETF-Demand-Stagnates-for-4-Consecutive-Weeks-–.png?w=1140 1140w” />
btc remains under immense selling pressure
The contraction in bitcoin spot ETF inflows can be attributed to dangerous market conditions. As of press time, sellers have been pushing lower. According to the BTCUSDT daily chart, the coin is down 14% from its all-time highs.
Although prices are within a wide range, with support at $61,000 and resistance at $73,800, sellers have the upper end in the short term. Of note, prices are still within the April 13 bear bar, tipping the trend in favor of sellers from an effort versus result perspective.
x/n21Wxz5U/” target=”_blank”>x/n21Wxz5U/” alt=”bitcoin price is trending downward on the daily chart | Source: BTCUSDT on Binance, TradingView” />
bitcoin spot ETFs are likely to see capital outflows if prices fall below $60,000 during the end of last week's price action. If that is the case, the odds of btc falling to as low as $53,000 and even $50,000 will not be discounted.
Currently, it remains to be seen if the sentiment will change. Although Hong Kong regulators approved multiple bitcoin and ethereum spot ETFs on April 15, their impact on the market remains to be seen. ethereum, like bitcoin, remains under pressure and continues to slide towards crucial support levels.
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