Bitcoin Exchange Reserves Decline, But ETF And Other Instruments Enjoy Growth
As per the latest report from , BTC exchange reserves have seen significant decline this year, but the growth in newer investment instruments like ETFs has made up for it.The “exchange reserve” is an indicator that measures the total amount of Bitcoin currently stored in wallets of all exchanges.
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Looks like most sectors have seen growth in the past year | Source:As you can see in the above graph, while the exchange supply has gone down, growth in other segments seems to more than make up for this decline.
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The exchange traded investment vehicles now hold 0.69% more supply than last year. This shows that there is increasing demand for trading Bitcoin through the familiar means (like ETFs). This trend may also indicate rising adoption from institutional investors. With a 0.98% increase this year, BTC on the Ethereum network now accounts for 1.73% of the total circulating supply.The report notes that both these sectors are important factors for Bitcoin’s price discovery, and so growth here may not support the popular idea that a supply shock is brewing in the crypto due to declining exchange reserves.
By the way, corporate treasuries now hold 0.91% of the circulating BTC supply. Microstrategy has been the main push behind this growth.
BTC Price
At the time of writing, Bitcoin’s price floats around $48.8k, up 1.5% in the last seven days. Over the past month, the crypto has lost 16% in value. Below is a chart that shows the trend in the price of the crypto over the last five days.BTC's price seems to have surged up in the past couple of days | Source:
Featured image from Unsplash.com, charts from TradingView.com, Arcane Research