BlackRock ETF Pushes Bitcoin to ‘Inflection Point’; US Entities Accumulate BTC

According to a well-known analytics company, the application for BlackRock’s Bitcoin (BTC) spot exchange-traded fund (ETF) is motivating US-based organizations to gather more of the popular cryptocurrency.

Glassnode has observed a notable increase in the percentage of Bitcoin supply owned and traded by US entities since BlackRock, the largest investment firm worldwide with over $10 trillion in assets under its management, submitted the BTC ETF application last month.

To date, none of the Bitcoin spot ETF applications submitted by Grayscale, VanEck, and Cathie Wood’s ARK Invest have been approved by the US Securities and Exchange Commission (SEC). However, the launch of the first Bitcoin futures ETFs was greenlit by the SEC in October 2021.

Glassnode has shared a chart indicating a rise in the amount of BTC being held or traded by US investors, while Asian-based market participants seem to be selling off their Bitcoin holdings.

“Following the Blackrock Bitcoin ETF request announcement on June 15th, the share of Bitcoin supply held/traded by US entities has experienced a notable uptick, marking a potential inflection point in supply dominance if the trend is sustained.”

Glassnode reports that if Bitcoin experiences a mild corrective phase, short-term holders may find themselves in a losing position.

“Of note, ~560,000 STH coins (21%) are in close proximity to the spot price suggesting a non-trivial portion of the STH supply has a heightened sensitivity to price action.”

Clemente shared with BTC enthusiast Anthony Pompliano in an interview that there are three indications that US institutions have been actively acquiring the leading cryptocurrency since BlackRock’s announcement of their application for a spot-based Bitcoin ETF.

Clemente observes the trading sessions throughout the day and indicates the increased market activity of participants in the United States.

“We can see that the ETF trade has been in full effect across several different things. But who’s been primarily putting that trade on? It appears that it is US-based entities…”