Bitcoin Spot ETFs See 14-Day Netflows Surge: Demand Returning?

Data shows the Bitcoin spot exchange-traded funds (ETFs) have seen their 14-day netflow trend climb into the positive territory, ending a period of sustained outflows.

Bitcoin Spot ETF Netflow Has Been Rising Recently

As highlighted by on-chain analytics firm Glassnode in a new post on X, the Bitcoin spot ETFs have seen their 14-day netflow trend climb higher recently. “Spot ETFs” refer to investment vehicles that allow investors to gain indirect exposure to an underlying asset’s price movements.

In the United States, the Securities and Exchange Commission (SEC) approved spot ETFs for Bitcoin back in January 2024. Thus, these funds have now been active for more than two years.

Since spot ETFs trade on traditional markets, they provide for an off-chain route into BTC. Whenever a trader invests into them, the fund buys the on-chain tokens and custodies them on their behalf. This convenience of the vehicles has made them a popular mode of investment among the more traditional investors, like institutional entities.

Now, here is the chart shared by Glassnode that shows the 14-day netflow trend for the Bitcoin spot ETFs over their history so far:

As displayed in the above graph, the 14-day Bitcoin spot ETF netflow trend has witnessed a sharp rise into the positive territory recently. Note that Glassnode defines “netflow” as the 30-day change in the combined holdings of the US-based funds.

Earlier, the netflow trend had dropped into the negative territory, implying outflows were dominating the market. Not only that, the negative netflows had been persistent, so there was consistent selling pressure coming from ETF users. With the recent surge in the metric, however, the trend appears to have flipped.

From the chart, it’s visible that the indicator has witnessed a continuation to the growth as the Bitcoin price has rallied above the $70,000 level. “Institutional demand remains tentative, but early re-accumulation signs are emerging,” noted Glassnode. It now remains to be seen whether spot ETFs will follow this trajectory in the near future or if another cooldown will happen.

In some other news, the Binance Bitcoin Net Taker Volume has shot up recently, as CryptoQuant community analyst Maartunn has pointed out in an X post. The Net Taker Volume is an indicator that keeps track of the difference between the taker buy and taker sell volumes on a given exchange (which, in the current case, is Binance).

As is visible in the above graph, the 7-hour moving average (MA) of the Binance Bitcoin Net Taker Volume has seen a notable positive spike close to $100 million, suggesting taker buy volume has outpaced the taker sell one. “The current pump is mirroring the moves from Nov 7 and Nov 25,” said Maartunn.

BTC Price

At the time of writing, Bitcoin is trading around $71,000, up more than 5% in the last seven days.

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