Ki Young Jua prominent cryptocurrency analyst, drew attention to the recovery of US supremacy in Bitcoin BTC/USD holdings, with the increase attributed to demand for cash exchange-traded funds (ETFs).
What happenedOn Tuesday, Ki Young Ju went to X to highlight the growth Relationship between US reserves and the rest of the worlda metric developed by its blockchain analytics firm CryptoQuant.
“The US is regaining its dominance in terms of bitcoin holdings. Its ratio compared to other countries is increasing, driven by demand for spot ETFs,” said Young Ju.
The ratio, which tracks well-known U.S. entities such as stock exchanges, banks and mutual funds versus non-U.S. entities, rose from 1.35 in early July to 1.43 as of Sept. 25.
Chart analysis shows a sharp decline in the ratio after peaking at 1.50 in March. This phase, through June, was characterized by higher weekly outflows, resulting in a net capital outflow of around $2.37 billion. according to data from SoSo Value.
But since July began, inflows into Bitcoin ETFs have increased, and as of Sept. 25, the 11 ETFs have raised $3.41 billion in net inflows.
See also: Sam-Altman Founded Worldcoin, Becomes Biggest Crypto Market Winner Thanks to OpenAI CEO's Developing Shareholding
Why is it important?:The growing US dominance in Bitcoin holdings means growing institutional adoption of the cryptocurrency. Bloomberg ETF Analysts James Seyffart and Eric Balchunas predicted last month that within a year, US ETFs would hold more Bitcoin than Satoshi Nakamoto, the pseudonymous creator of Bitcoin.
For context, Nakamoto was supposed to have… 1.1 million Bitcoin as of February 2024, according to on-chain analytics platform Arkham Intelligence.
At the time of writing, over $58 billion worth of Bitcoin was held in US ETFs, with From BlackRock iShares Bitcoin Trust Exchange Traded Fund will go away having a domain of almost 40%.
Price action:At the time of writing, Bitcoin was trading at $63,855.18, recording a marginal gain of 0.09% over the past 24 hours, according to Data from Benzinga Pro.
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