Eric Balchunas, Bloomberg's leading ETF expert, predicted that the Bitcoin ETF is on track to overtake Satoshi Nakamoto as the largest holder of the flagship cryptocurrency by Christmas.
According to the latest data provided by analysts, their holdings now stand at a whopping 938,533 BTC.
As reported by U.Today, Bitcoin recently recorded huge inflows of around $550 million.
Bitcoin ETF net inflows are currently nearing the $20 billion milestone.
Are Bitcoin price movements correlated with ETF flows?
In a separate comment, Balciunas also talked about Bitcoin's rather underwhelming price movement. “Price is the net result of buyers and sellers, and if the ETF was a buyer, the only answer is that other holders were selling as much or more. It's going up,” he said.
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The leading cryptocurrency is currently trading at $65,699, according to CoinGecko data. Although the cryptocurrency has experienced a significant rally recently, it is still down more than 11% from its current highs.
David Rowant, head of research at crypto brokerage firm FalconX, argues that there is indeed a “statistically significant” relationship between changes in ETF flows and prices. The current correlation coefficient is 0.30. Notably, this correlation has recently strengthened.
“Given that ETFs will be the main source of new capital to the crypto market in 2024, this correlation could become even stronger if the market finds a sustainable direction.” List said.
