Bitcoin price has stabilized above the $66,000 support as of writing on October 25th. Despite high confidence, Bitcoin is still trending below the psychological round of $70,000. As of early October, the sellers have still not been shaken off.
Demand for Spot Bitcoin ETF surges to 6-month high
However, this is about to change, as we see in a new spot Bitcoin ETF trend. Latest analysis An October 25th article by Ki Young Ju of CryptoQuant shows that demand for these crypto derivative products has increased over the past 30 days.
The rally pushed demand for spot Bitcoin ETFs in the US to a six-month high, attracting more than 64,900 BTC in net flows.
Net flows, which take into account total inflows and total outflows during the test period, can be used to gauge institutional investor interest. Every time it rises, it means more institutions are gaining exposure to digital gold, especially when coupled with growing inflows. The more interest there is from institutional investors, the more likely BTC will rise.
soso value data show U.S. issuers collectively manage more than $66 billion. On October 24th, investors purchased over $188 million in BTC through issuers. To date, BlackRock is the largest issuer through IBIT, managing over $27 billion in BTC.
Over the past few months, Grayscale's GBTC has been experiencing significant outflows. On October 24th, over $7 million BTC was redeemed from GBTC.
Will financial institutions push BTC above $70,000?
The approval of a spot Bitcoin ETF in the US has raised hopes that it will pave the way for financial institutions to guide prices. Until then, exposure to BTC was mostly found through approved trusts, with some offered by Grayscale.
Meanwhile, given the listed company's large investments in digital assets, some institutions bought MicroStrategy stock as its performance mirrored that of BTC.
According to Bitcoin government bondsMicroStrategy owns over 250,000 BTC, the largest holding of any public company in the US and globally. Over the years, the company's stock MSTR has outperformed top U.S. stocks and indexes since the company's strategy of regularly accumulating BTC.
Only time will tell if BTC bulls have what it takes to break above $70,000. This round number marks the highest value in September. If Bitcoin rises following the October 24 downside rejection, it could find the momentum needed to define its near-term trajectory.
A close above this psychological resistance clears the way for a retest of $72,000 and an all-time high.
Featured image from Canva, chart from TradingView
