A prominent analytics firm says BlackRock’s Bitcoin (BTC) spot exchange-traded fund (ETF) application is pushing US-based entities to accumulate the crypto king.
Glassnode notes that the share of Bitcoin supply held and traded by US entities is witnessing significant rise since BlackRock, the world’s largest investment firm with over $10 trillion in assets under its management, first filed for a BTC ETF last month.
No US Bitcoin spot ETF application has ever been approved thus far, despite submissions from Grayscale, VanEck, and Cathie Wood’s ARK Invest, though the U.S. Securities and Exchange Commission (SEC) did greenlight the launch of the first Bitcoin futures ETFs in October 2021.
Glassnode shares a chart showing a surge in the supply of BTC held or traded by US investors while Asian-based market participants appear to be distributing their Bitcoin stacks.
“Following the Blackrock Bitcoin ETF request announcement on June 15th, the share of Bitcoin supply held/traded by US entities has experienced a notable uptick, marking a potential inflection point in supply dominance if the trend is sustained.”
The analytics firm also notes that roughly 560,000 Bitcoin owned by short-term holders (STHs), which represent 21% of the overall STH supply, were purchased at a price that is in close proximity to the current value of BTC.
According to Glassnode, the condition suggests that more short-term holders could see their positions in the red if Bitcoin goes through a mild corrective phase.
“Of note, ~560,000 STH coins (21%) are in close proximity to the spot price suggesting a non-trivial portion of the STH supply has a heightened sensitivity to price action.”
At time of writing, Bitcoin is worth $30,556.
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