Data shows that Bitcoin exchange-traded funds (ETFs) have taken their 14-day net trend into positive territory, ending a period of sustained withdrawal.
Recently, the Netflow Bitcoin Spot ETF is rising
As noted by blockchain analytics firm Glassnode in a recent article on X, Bitcoin ETFs have recently broken their 14-day trend line. “Spot ETFs” refer to investment vehicles that allow investors to gain exposure to price movements of an underlying asset.
In the United States, the Securities and Exchange Commission (SEC) approved spot ETFs for Bitcoin in January 2024. Thus, these funds have been active for more than two years now.
Because spot ETFs trade in traditional markets, they provide an off-chain route to BTC. The fund buys off-chain tokens and holds them on their behalf whenever a trader invests in them. This convenience of vehicles has made them a popular investment method among traditional investors, such as institutional entities.
Now, here’s a chart shared by Glassnode that shows the 14-day trend of the Bitcoin Spot ETF’s history so far:
As shown in the chart above, the 14-day trend of the Bitcoin Spot ETF recently witnessed a sharp rise into positive territory. Note that Glassnode defines “net flow” as the 30-day change in US mutual fund holdings.
Earlier, the net flow trend fell into negative territory, which means that exits dominate the market. Not only that, the negative net flows were constant, so there was constant selling pressure from ETF users. With recent increases in metrics, however, the trend seems to have changed.
As can be seen from the chart, this indicator is witnessing continued growth as the price of Bitcoin has broken above the $70,000 level. “Institutional demand remains tentative, but early signs of recovery are emerging,” Glassnode noted. It remains to be seen whether spot ETFs will follow this trajectory in the near term or if another cooling will occur.
In some other news, Binance Bitcoin Net Taker volume has recently spiked, as noted by CryptoQuant community analyst Martunn in an X post. Net Taker Volume is an indicator that tracks the difference between buying and selling volumes on a given exchange (which in the current case is Binance).
As seen in the chart above, the 7-hour moving average (MA) of Binance Bitcoin Net Taker volume has seen a significant positive increase near $100 million, indicating that the volume of buying by buyers is greater than that of sellers. “The current pump reflects the movements from November 7 and 25,” Martunn said.
BTC price
At the time of writing, Bitcoin is trading around $71,000, up more than 5% in the past seven days.
