Bitcoin: Will ETF interest push BTC to new highs?

Journalist

Posted: February 21, 2024

• Bitcoin’s rally, fueled by ETF enthusiasm, gave hope to bullish investors.
• Global interest grew as South Korea considered the approval of Bitcoin ETFs.

The substantial rally in Bitcoin’s [BTC] price, fueled by the enthusiasm surrounding ETFs, has brought joy to bullish investors.

Even though some skeptics believe that the ETF liquidity will soon run out, data suggested that there could be more in store for the king coin.

Growing interest

In the brief period since its launch, ETFs absorbed 0.5% of the total Bitcoin supply, equivalent to 100,000 BTC, valued at $5.2 billion.

More than half of these absorptions occurred within the last week, indicating a rapid influx of Bitcoin into ETFs.

The fact that such a substantial amount was accumulated suggested that the enthusiasm for Bitcoin ETFs remained high. This ongoing interest contradicted any notion of a decline in their appeal.

Source: Dune Analytics

BTC goes global

There was a surge in global interest surrounding ETFs as well. Notably, South Korea’s ruling party has been contemplating the inclusion of a U.S.-approved Bitcoin spot ETF as part of its election pledge.

Additionally, discussions were underway within the party to potentially ease the ban on institutional investment in Initial Exchange Offerings (IEOs).

If more countries follow suit and adopt Bitcoin ETFs, it could result in increased liquidity as a broader range of investors gain exposure to the cryptocurrency market through regulated and accessible vehicles.

This added liquidity may play a crucial role in sustaining Bitcoin’s recent rally by providing a more robust and stable market environment.

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State of BTC

At press time, BTC was trading at $52,143.02 and its price had grown by 0.73% in the last 24 hours. The Long/Short difference of Bitcoin also grew significantly during this period.

A rising Long/Short difference indicated that old addresses holding BTC had outnumbered new addresses at press time. These addresses are less likely to sell their holdings and could help support BTC’s price levels.

Source: Santiment