An estimated 75% of new Bitcoin (BTC) investments come from the 10 spot Bitcoin exchange-traded funds (ETFs) that were approved in the United States on Jan. 11.
In the past two weeks, over three-quarters of new Bitcoin investments originated from spot Bitcoin ETFs, excluding Grayscale’s Bitcoin Trust (GBTC) ETF, according to a Feb.14 report by on-chain data analytics firm CryptoQuant.
“We estimate over 75% of new investment into Bitcoin are coming from these ETFs. Moreover, investment from these ETFs has increased to 2% of the total historical investment in Bitcoin in just one month as measured by the realized market capitalization,” the report said.
Bitcoin rose 1.8% in the 24 hours leading up to 10:45 a.m. UTC, to trade at $52,354. Bitcoin reached a two-year high of $51,000 on Feb. 14, propelling its market capitalization above $1 trillion for the first time since November 2021. The total crypto market capitalization stands at $1.96 trillion, up 2.01% on the day.
According to an X post on Feb. 14 by CryptoQuant head of research Julio Moreno, ETF demand was the main driver behind Bitcoin’s price surge.
“Bitcoin has crossed the $50,000 mark mostly on the back of fresh demand from ETFs.”
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The spot Bitcoin ETFs amassed a total of 4,115 Bitcoin, worth approximately $215 million, according to data from Farside Investors. BlackRock’s iShares Bitcoin ETF (IBIT) was responsible for the lion’s share of the inflows, with a total of 4,843 Bitcoin worth $253 million at publication time.
TheCryptoQuant research report expects Bitcoin to breach $56,000 as the next significant price level.
“The next target for Bitcoin stands at $56,000 from a network valuation perspective. Valuation indicators are not flashing risks of a meaningful price correction.”
However, Bitcoin price faces significant resistance around $52,000, due to a “brick wall of asks on Bitfinex,” up to the $52,300 mark, according to an X post on Feb. 14 by on-chain analyst Cole Garner.
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