A new study shows that a significant portion of spot Bitcoin ETF inflows is not driven by arbitrage but by long-term investments from traditional markets.
Unhedged Long-Term Positions in Bitcoin ETFs
A collaborative report by Glassnode and Avenir Group confirms that the recent rise in funds flowing into spot Bitcoin ETFs is driven by long-term demand rather than arbitrage strategies. Researchers, including Helena Lam from Avenir Group, note that individuals are investing with greater conviction and directional exposure rather than merely seeking short-term profits.
Bitcoin as a Macro Asset
The report also highlights that Bitcoin is increasingly resembling traditional macro assets. Its performance is now closely tied to broader financial conditions, showing positive correlations with assets like the S&P 500 and gold, while inversely tracking the US dollar and credit spreads.
Impact of Global Liquidity on Bitcoin
André Dragosch from Bitwise Europe emphasizes the connection between the global money supply and Bitcoin's price, noting that increases in the money supply could correlate with significant rises in Bitcoin's price. Estimates suggest that every $1 trillion increase in the money supply could translate to a $13,861 rise in Bitcoin's price.
Thus, the analysis shows that Bitcoin is gradually becoming an important institutional asset, indicating more stable capital and a maturing market.
