Key Points
- Bitcoin’s bull run may continue due to demand for Bitcoin ETFs, as stated by CryptoQuant CEO Ki Young Ju.
- Despite recent market volatility, institutional investors continue showing interest in Bitcoin ETFs.
CryptoQuant CEO Ki Young Ju stated that the demand for Bitcoin Exchange Traded Funds (ETFs) is a crucial factor for Bitcoin’s ongoing growth.
According to Young Ju, the rally will continue as long as the inflow into Bitcoin ETFs surpasses the outflow. However, if withdrawals exceed new investments for a significant duration, the market could become bearish.
Understanding ETF Inflow and Outflow Trends
Young Ju pointed out that even though ETF inflows have lessened, they still surpass outflows. This indicates that institutional investors maintain their interest in Bitcoin, despite market fluctuations.
Recent data from SoSoValue revealed that Bitcoin ETFs registered an outflow of $71.07 million as of February 19, marking the second consecutive day of net outflows. Despite this, the total trading volume for Bitcoin ETFs remains strong at $2.05 billion, suggesting that market participation is still high.
Institutional Investment in Bitcoin ETFs
Despite short-term volatility, large institutions continue investing in Bitcoin ETFs. It was reported that Abu Dhabi’s Sovereign Wealth Fund made a significant investment of $437 million in BlackRock’s IBIT. This indicates a growing interest in digital investment products among large financial institutions. Furthermore, Barclays, a British universal bank, has joined JPMorgan and Goldman Sachs in increasing stakes in Bitcoin ETFs.
Bitcoin Price Fluctuations and Market Uncertainty
Bitcoin is currently valued at $97,000, which is lower than its peak price of $109,200 recorded last month. This price drop is associated with uncertainty over President Donald Trump’s plan to establish a Strategic Bitcoin Reserve. Investors initially expected the President to expedite the Bitcoin reserve process after resuming office, but doubts have arisen, causing market instability.
Despite this, the SEC has initiated the Crypto Task Force led by Hester Peirce, which will play a significant role in establishing the proposed national Bitcoin reserve. Bitcoin’s bull market remains robust, bolstered by substantial purchases from companies like Strategy and Semsler Scientific. However, its future hinges on demand from ETFs.
