Bitcoin held in funds drops to lowest since October 2021, ByteTree data shows

03/16 09:40

According to CoinDesk, Bitcoin (BTC) funds are bleeding coins as U.S. bank failures fuel expectations of an early Federal Reserve (Fed) pivot in favor of liquidity easing. Data tracked by ByteTree Asset Management shows the number of coins held by close-ended funds, spot and futures-focused exchange-traded funds (ETFs) in Europe, the U.S. and Canada has declined by 16,560 BTC ($409 million) this month, reaching a 17-month low of 826,113 BTC. ETFs and other investment vehicles that allow taking exposure to bitcoin without having to own the cryptocurrency are widely considered a proxy for institutional activity. The decline in fund balance suggests a lack of institutional participation in bitcoin's recent rally, reportedly fueled by safe-haven demand and renewed hopes for Fed rate cuts in the second half of the year. According to some observers, the gains are evidence of bitcoin's strengthening appeal as a hedge against the banking system. Bitcoin picked up a strong bid near $19,600 late Friday after Silicon Valley Bank, formerly one of the top 20 lenders in the U.S., shut operations. Prices have risen over 25% since then, reaching a nine-month high of $26,501 on Tuesday, CoinDesk data show.
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