Bitcoin exchange trade products recorded a net inflow of 20,685 BTC to 20,685 BTC last week, according to digital asset company K33 Research.
The updated momentum marked the total holdings of US spot Bitcoin ETFs to 1.32 million btc, surpassing their previous peak set on July 30th.
US Bitcoin ETF products donated nearly 97% of last week’s 20,685 BTC ETP inflow, highlighting a surge in demand before the FOMC meeting.
Bitcoin ETF influx “it tends to be one of the key determinants of Bitcoin’s performance,” said André Dragosch, head of research in Europe at Bitwise Investments. Decryptionadds that “percentage of Bitcoin performance explained by changes in ETP flows” has reached an all-time high.
Compared to the Ethereum ETF flow, “it appears to have a ‘reboot’ back to Bitcoin from Ethereum in terms of investor flow,” Dragosh said, citing the data. “Over the past week, we have flowed into Bitcoin ETFs, surpassing the new supply growth of 8.93 times the key tailwind of Bitcoin’s recent performance.”
Analysts at K33 have written that flows are a key factor in Bitcoin’s strength since ETF approval last year, with the latest surges indicating an accelerated demand that could support further price support.
Over the past 30 days, investors have accumulated around 22,853 BTC through a variety of products, surpassing the new supply of 14,056 BTC. This rising risk appetite for Bitcoin supports a recent recovery, Bitwise said Monday Report.
Fidelity’s FBTC products accounted for a significant portion of Bitcoin ETF demand last week, with a net inflow of $843 million, representing 36% of the total $2.34 billion recorded in all funds, marking an 18-month high.
According to analysts at Bitwise, soft inflation data and rate reduction expectations are key drivers, but increased risk appetite has also been highlighted by the major crypto-related IPOs and gusts of announcements last week.
“Even so, activity remains slimy and volatility is historically low,” K33 analyst wrote in an investor note on Tuesday.
They pointed out the seven-day volatility of Bitcoin. This hit an annual low of less than 0.7% last week as prices rose above $115,000.
Analysts at K33 will be 11 days with volatility of less than 1.3% over seven days, “the second-longest stretch of this kind of stretch this year.”
The implicit volatility of Bitcoin, which uses option data to measure future market expectations, also remains close to multi-year lows.
“The directional signals are mixed because there are no major immediate catalysts other than calm trading activity, high offshore leverage and Wednesday’s FOMC,” they said.
