Bitcoin outflows from exchanges have reached a yearly high, while inflows to Canadian Bitcoin ETFs have also reached a yearly high, indicating that investor trust in the asset is growing.
According to new research, Canadian Bitcoin exchange-traded fund (ETF) holdings have reached all-time highs, with spot-based products leading the way.
Since January, Canadian Bitcoin ETFs have added 6,594 Bitcoin (BTC) to their holdings, bringing the total number of BTC held to an all-time high of 69,052.
According to Glassnode, the Purpose Bitcoin ETF witnessed the most gain in holdings over that time period, with a net increase of 18.7% to 35,000 BTC.
An exchange-traded fund (ETF) is a type of mutual fund that allows investors to bet on the price of an asset without actually owning it. The Purpose Bitcoin ETF, a spot Bitcoin ETF, presently manages around $1.68 billion in assets. Although there is presently no Bitcoin ETF available in the United States, the indicators reveal that investors are hungry for the Canadian offering. The crypto exchange outflow rate reached a 2022 high of 96,200 BTC per month, according to blockchain analytics firm Glassnode’s recent Week OnChain report.
The analytics company reacted to the timing of events surrounding Bitcoin fluctuations by saying:
“Despite the multiple macroeconomic and geopolitical headwinds of recent months, it is extremely impressive to watch such large withdrawals from exchanges (spot holdings), as well as inflows into both ETF products, DeFi applications, and on-chain accumulation wallets.”
Since roughly mid-March, bitcoin has been accumulating rapidly. So-called shrimps and whales have been the biggest accumulators. Shrimps are investors with a balance of 0 to 100 bitcoins, whereas whales have a balance of 1,000 to 10,000 bitcoins.
This week also saw an influx of buying from Luna Foundation Guard, inflows into Purpose ETF, and 1k+ $BTC Whales.
Read our analysis👇https://t.co/o0S5AsYPYO
— glassnode (@glassnode) April 4, 2022
Terra’s Luna Foundation Guard (LFG) is one of the most recent buyers, with a goal of acquiring $3 billion in BTC. With only 2 million BTC left to mine after the 19 millionth coin was mined on April 1, Bitcoin scarcity is becoming a major concern as acceptance and investment grow among governments, organisations, and individuals.
“The scarcity and purity nature of Bitcoin as collateral may well be returning to the foreground once again,” Glassnode said.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.