Why Is Bitcoin Stagnant Despite ETF Inflows? Report Answers
Summary
Bitcoin has been stagnant despite inflows into spot ETFs approved by the SEC in January. These ETFs provide an alternative means for investors to gain exposure to Bitcoin without owning the asset. The funds have brought large demand for Bitcoin, but the price has been consolidating recently. Glassnode notes that Coinbase holds a significant portion of the total exchange reserve and the US spot ETF balance through its custody service. Whale deposits to the platform, including from the Grayscale Bitcoin Trust, have added to selling pressure in the market. Additionally, the trend in the futures market, with high levels of open interest in CME's futures, may explain why spot ETF inflows have only had a neutral impact on Bitcoin prices.
