Trading volume in the bitcoin-ETF market reached $7.64 billion this week, Santiment said. As Anthony Pompliano noted, institutional investors are expanding their presence in the cryptosphere, which provokes a stronger demand for BTC.
The head of Coinshares research division James Butterfill emphasized that the demand for bitcoin is outpacing the pace of its mining. If, on average, miners mine 900 BTC daily, crypto funds buy up about 2,800 BTC during the same time.
The high activity of institutional investors has caused the digital currency’s exchange reserves to fall by 28% compared to 2020. This behavior of investors puts pressure on the market, which led to the explosive growth of bitcoin in the second half of February.
Coinshares analyst emphasized that if earlier traders were focused on the policy of the US Federal Reserve, now they buy BTC, despite the risks of tightening monetary policy already in March.
The change of strategy occurred in response to the emergence of crypto funds in the U.S. market, investing directly in digital currency.
The same viewpoint is held by Bloomberg strategist James Seyffarth. He predicts an increase in trading on the ETF market.
In the middle of the week, the turnover of IBIT shares from BlackRock reached $3.351 billion. Other funds, including GBTC from Grayscale, also showed growth.