The latest report by Matrixport indicates that inflows into Bitcoin ETFs have surpassed $45 billion since the beginning of the year. This increase is attributed to growing institutional interest and steady asset allocation by companies into Bitcoin.
Inflows in Bitcoin ETF
According to the report, the main drivers behind the inflows into Bitcoin ETFs include increased interest from institutional investors. Matrixport highlights that despite the positive outlook for ETF flows, there is a risk of 'hidden selling pressure' in the market, particularly when the Bitcoin price approaches the average cost of individual investors over the last year (approximately $45,000). At these levels, the likelihood of investors switching to sales increases, which may limit further price increases.
Expected Bitcoin Behavior
The report also notes that some capital channeled into ETFs is currently at a loss in Q2 2024, which could be accompanied by short-term structural corrections. Matrixport analysts emphasize that the key factor determining the market direction will be whether Bitcoin can break out of its current trading range and trigger new inflows from investors.
Strong Corporate Demand
The increase in institutional investments through ETFs indicates a strengthening influence of traditional finance in the crypto market. However, it is noted that these inflows are playing an increasingly decisive role in Bitcoin pricing. Analysts emphasize that in the short term, considerations of profit realization by investors, psychological levels, and macroeconomic factors should also be taken into account. Matrixport's warnings suggest that Bitcoin investors should be more careful when positioning, especially at key technical levels.
Thus, inflows into Bitcoin ETFs positively impact the market, but risks related to hidden selling pressure and potential short-term corrections remain. Institutional interests continue to grow, yet investors must consider multiple factors to safely execute their trades.
