BTC Spot ETF Demand Proves Bitcoin Is A Macro Asset
A study indicates that a substantial portion of spot Bitcoin ETF inflows is driven by long-term, unhedged demand from traditional markets rather than arbitrage or hedged futures strategies. The launch of US spot Bitcoin ETFs has raised questions about the authenticity of capital influx, previously assumed to be hedged by ETF holdings. Research shows a strong correlation between unhedged demand and ETF inflows, suggesting institutional investors are making committed investments. The rise in spot ETF holdings reflects a structural change in Bitcoin's market profile, positioning it as an institutional asset, which enhances capital stability and liquidity. Bitcoin's performance is increasingly linked to broader financial conditions, showing positive correlations with risk-on assets and negative correlations with the US Dollar Index. Its price responsiveness to the Global Liquidity Index indicates that Bitcoin rallies during liquidity expansion and declines in tighter financial conditions. A $1 trillion increase in global money supply could lead to a $13,861 rise in Bitcoin's price.
