Bitcoin Rebound Driven by ETFs and Long-Term Holder Accumulation

• If we look at SoSoValue data, it reveals that US spot Bitcoin ETFs had three consecutive weeks of inflows, estimated at about $2.1 billion.
• As around 60% of Bitcoin supply has not been active for over a year, the market is growingly dominated by longer-term holders instead of fast-money flows.

The latest rebound of Bitcoin has shown a powerful base of long-term holders as ETF inflows and corporate treasury purchasing reshape the asset’s ownership structure, Bernstein mentioned in a research note on March 16. 

Bernstein mentioned Bitcoin surpassed gold and prominent equity indexes in the last week regardless of increased conflict in the Middle East, with Bitcoin going up about 7% and Ether up around 9% in that duration. 

The partial reason for the shift was assigned by the analysts to prolonged US spot Bitcoin exchange-traded fund (ETF) inflows and the gradual accumulation of corporate purchasers like Strategy, which they say are slowly strengthening Bitcoin’s long-term holder base, bestowing a more stable market structure. 

Bernstein further mentioned that possibly it takes a physical conflict to realise Bitcoin is still the most portable, digital and liquid asset with no counterparty risks. The wider point of Bernstein is only that ownership is evolving and changing. 

As around 60% of Bitcoin supply has not been active for over a year, the market is growingly dominated by longer-term holders instead of fast-money flows. As a lot of Bitcoin shifts into ETFs, corporate treasuries and wallets that seldom transact, short-term sell pressure may matter less, probably offering the market a more stable base at the time of stress. 

What Does The Data Reveal? 

The data revealed by CoinGecko mentions that BTC traded at around $73,208 at the press time, up around 8% in the past week at the time of increased geopolitical tensions in the Middle East. 

If we look at SoSoValue data, it reveals that US spot Bitcoin ETFs had three consecutive weeks of inflows, estimated at about $2.1 billion. Bernstein assigned the inflows to increasing long-term capital allotment via wealth managers and institutional funds, comprising pension and sovereign funds. 

Bernstein also mentioned that spot BTC ETFs have almost reversed their year-to-date (YTD) capital outflows, having net withdrawals suppressed to around $460 million, contrasted with around $92 billion in overall assets under management (AUM).