Significant Increase in Trading Volumes Indicates Growing Institutional Demand as ETF Approval Nears, According to Glassnode
A significant uptick in cryptocurrency exchange flows indicates a potential readiness among institutions for the approval of spot market Bitcoin (BTC) exchange-traded funds (ETFs), as reported by market intelligence firm Glassnode.
According to Glassnode’s recent analysis, the 30-day simple moving average (SMA) of Bitcoin flows in and out of exchanges surged from $930 million at the beginning of the year to over $3 billion currently, marking a remarkable 220% increase. The firm highlights a growing interest from investors in utilizing exchanges for trading, accumulation, speculation, and other services. Additionally, Glassnode observes a substantial growth in the average size of Bitcoin deposits to exchanges, approaching the previous all-time high of $30,000 per deposit.
This trend suggests a surge in institutional interest, particularly as key ETF decision dates approach in January 2024. Bloomberg ETF analyst James Seyffart speculates that the U.S. Securities and Exchange Commission (SEC) may be gearing up to approve several bids for a spot BTC ETF in early January. As of the latest update, Bitcoin is trading at $43,974, reflecting a more than 16% increase in the past seven days.
Clever Robot News Desk 8th December 2023
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