By The Daily Hodl - 4 months ago - Reading Time: 2 minutes
Massive Uptick in Exchange Volumes Could Suggest Growing Institutional Demand Ahead of ETF Approval: Glassnode
A massive surge in crypto exchange flows suggests institutions could be preparing for the potential approval of spot market Bitcoin (BTC) exchange-traded funds (ETFs), according to the market intelligence firm Glassnode.
Glassnode notes in a new analysis that the 30-day simple moving average (SMA) of Bitcoin flows in and out of exchanges grew from $930 million from the start of the year to over $3 billion at time of writing, a 220% increase.
“Looking at this from the on-chain volume domain, we can see that YTD (year-to-date) flows in and out of exchanges have grown considerably from $930 million to over $3 billion (+220%).
This underscores an expanding interest from investors to trade, accumulate, speculate and otherwise utilize exchanges for their services.”
Source: Glassnode InsightsThe analytics firm also notes that the average size of Bitcoin deposits to exchanges has grown significantly this year.
“With such a large uptick in exchange volumes, an interesting observation emerges from analysis of the average size of deposits to exchanges. This metric has experienced a non-trivial rally, climbing just shy of the previous all-time high of $30,000 per deposit.
From this, it appears that exchange deposits are currently dominated by investors moving increasingly large sums of money. This is potentially a sign of growing institutional interest as key ETF decision dates approach in January 2024.”
Source: Glassnode InsightsBloomberg ETF analyst James Seyffart recently speculated that the U.S. Securities and Exchange Commission (SEC) could be gearing up to approve a slew of bids for a spot BTC exchange-traded fund in early January.
Bitcoin is trading at $43,974 at time of writing, up by more than 16% in the past seven days.
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Original source: The Daily Hodl