The influx of Bitcoin ETF investments is significantly altering the market's structure and supply dynamics. This participation includes a mix of high-net-worth individuals, family offices, and institutional funds, with only 30-40% being true institutions. As of January 2024, Cumulative ETF Flows have reached nearly 1.2 million BTC, removing substantial supply from the market. The behavior of institutional investors, often assumed to be highly strategic, actually mirrors retail investors, indicating herd-like tendencies. This trend shows that psychological factors influence large financial participants similarly to retail investors.
ETF Cumulative Flows have grown exponentially to almost 1.2 million BTC since January 2024, which removes a meaningful chunk of available supply from the market indefinitely.
The accumulation paired with long-term holding from treasury companies and potentially nation-states has permanently altered Bitcoin's liquidity profile; these coins may never re-enter circulation.
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