BlackRock’s IBIT led the outflow charge, losing nearly $193 million, followed by Fidelity’s FBTC, which saw $74 million withdrawn. Grayscale’s GBTC also registered continued modest redemptions. By the end of the week, total net assets across US-listed spot Bitcoin ETFs had fallen to approximately $113.5 billion, a noticeable drop from early December’s peak of over $120 billion. Despite this, Bitcoin prices remained stable, hovering around the $87,000 mark.

Bitcoin ETFs and Institutional Demand: A Temporary Shift?

The recent six-day streak of net outflows marks the longest withdrawal phase since early autumn, with total outflows surpassing $1.1 billion. However, Vincent Liu, the chief investment officer at Kronos Research, suggests these outflows are likely temporary. Liu attributes the dip to “holiday positioning” and reduced liquidity rather than a collapse in underlying demand. He anticipates that institutional flows will return and stabilize as the new year begins.

Looking forward, Liu believes that a potential shift toward Federal Reserve easing in 2026 could further bolster ETF demand. Current rate markets already hint at 75 to 100 basis points of cuts, signaling an easing momentum that could rejuvenate institutional interest.

Institutional Demand Cooldown: A Broader Crypto Signal?

A report from Glassnode supports the notion of cooling institutional demand. It notes that both Bitcoin and Ether ETFs have entered a prolonged outflow phase, indicating that large investors are pulling back from crypto exposure. Since early November, the 30-day moving average of net flows into US spot Bitcoin and Ether (ETH) ETFs has remained negative, reflecting restrained participation amid tightening market liquidity.

As ETFs often serve as a proxy for institutional sentiment, these extended outflows suggest a shift away from crypto among large allocators after a year in which institutions were key market drivers.

In conclusion, while the recent outflows from Bitcoin ETFs may be temporary, they provide a window into the current mindset of institutional investors. With potential Federal Reserve easing on the horizon and evolving crypto infrastructure, the landscape for Bitcoin ETFs and institutional demand may soon see a positive shift.

The post Bitcoin ETFs: 6 Shocking Insights into Institutional Demand Decline appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

“Looking at the trends, it’s clear that most stock market and forex traders are transitioning to cryptocurrencies,” Jethwani conveyed to Cointelegraph. “We’re witnessing a significant influx of crypto investors and traders in India presently. There’s no going back for them.”

Jethwani is hopeful that the growing demand will prompt the Indian government to reconsider their unregulated and heavily taxed treatment of cryptocurrencies. He metaphorically referred to India’s present crypto environment as a “compressed spring,” indicating that regardless of the stringent regulations and high taxes, people are still gravitating towards digital assets.

“The Indian authorities attempt to curb crypto with hefty taxes and TDS (Tax Deducted at Source)”, Jethwani explained, highlighting the 1% TDS that many believe has hampered trading activity. The existing Indian Income Tax Act imposes a flat rate of 30% tax on profits made from selling Virtual Digital Assets (VDAs), in addition to the 1% TDS that applies to all crypto transactions above $115, deducted from either the buyer or seller of VDAs.

While comprehensive regulatory guidelines for crypto are yet to be introduced in India, Jethwani stated that the pressure is escalating. He cited increasing political consciousness and recent demands for a Bitcoin reserve initiative. On June 26, Pradeep Bhandari, a spokesperson for the ruling party in India, suggested the country consider setting up its own Bitcoin reserve, following the example set by the US. Bhandari also stressed the need for regulatory clarity and the potential for India to establish a sovereign Bitcoin strategy.

Despite the likely slow pace of progress, Jethwani believes user demand will “force” a shift. “It’s inevitable. The government will eventually have to take it seriously and we can expect more favorable regulations,” Jethwani asserted to Cointelegraph.

The post Rising Crypto Demand in India Could Prompt Regulatory Revisions appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

The post Crypto Market Capitalization Surges to Record $3.8 Trillion Amid Renewed Bullish Sentiment appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

It’s clear that retail investors, either directly or via investment advisors and hedge funds, hold a significant portion of spot Bitcoin ETF shares. Despite a perceived lull in direct retail investor demand, particularly outside the US where self-custody is key, it’s essential to note that it’s not extinct.

There’s a common belief that Bitcoin (BTC) can’t grow due to dwindling retail investor demand, supported by on-chain data showing small wallet activity at a multi-year low. But does this tell the whole story? It appears retail interest remains, just in a different form. This cycle, much of the retail demand seems to be filtering through traditional financial systems: spot ETFs, pension funds, and brokerage accounts.

Since the US launch of spot Bitcoin ETFs in January 2024, Bitcoin has found its way into portfolios of clients who might never have held it directly, due to technical unfamiliarity or unwillingness to self-custody. Institutions also invest in ETFs for their regulatory clarity and ease of accounting. Among these institutions, investment advisors, and hedge funds are the primary ETF holders, managing Bitcoin exposure for both retail and corporate clients. Furthermore, banks, insurers, and pension funds are joining in, offering BTC exposure to their customers.

Collectively, ETF shareholders now possess approximately $135 billion in Bitcoin. According to Bloomberg analyst Eric Balchunas, investment advisors account for nearly half of the $21 billion in assets reported via 13F filings—a growing portion of total ETF exposure. Hedge funds come next with $6.9 billion in ETF shares (about 83,934 BTC), followed by brokerages and holding companies.

The CoinShares report highlights: Goldman Sachs leads among financial advisors with $1.8 billion invested, while Millennium Management tops hedge funds with $1.6 billion.

It’s easy to categorize ETF flows as purely institutional, contrasting the familiar image of a small retail wallet stacking sats. Yet, if the end holder of a BTC ETF share is a retail client, it may be time to rethink how on-chain data is interpreted. This could be the new reality of the Bitcoin market: new retail demand prefers to keep its Bitcoin in a brokerage account, not a self-custodial wallet.

Despite the steady demand from ETFs, Bitcoin’s price remains under pressure. Current inflows, even with ETFs, aren’t enough to counterbalance the ongoing outflows. A significant catalyst, like interest rate cuts, might be needed to stimulate demand. Such a trigger would primarily benefit institutions and their clients, who now play a central role in the Bitcoin ecosystem.

While wealthier US investors may opt for exposure via BlackRock and peers, retail participants in places like Nigeria or Argentina will likely continue to buy and hold BTC directly. So perhaps direct retail demand hasn’t disappeared—it’s just quieter. And under the right conditions, it could reemerge.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

The post Retail Interest in Bitcoin Remains: The Shift Towards Spot BTC ETFs appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

A report recently released by Fidelity Digital Assets points to a significant shift in Bitcoin’s supply dynamics post the 2024 halving. The report highlights that the ‘ancient’ Bitcoin supply, which refers to coins held for a decade or longer, has begun to outstrip new issuance. Each day, 550 BTC moves into the ancient supply category, compared to 450 BTC issued.

This trend, when combined with persistent buying from institutional investors, raises an intriguing question: Could this escalating demand drive Bitcoin’s price to $1 million?

The convergence of Bitcoin accumulation and scarcity has resulted in over 17% of the total issuance (3.4 million BTC valued at $360 billion at $107,000/BTC) being classified as ancient supply. This reflects a strong conviction among holders, with daily decreases happening less than 3% of the time. The report suggests this proportion could reach 20% by 2028 and 25% by 2034, further tightening the available supply.

At the same time, capital from institutional investors is growing. Bitwise anticipates Bitcoin inflows to hit $120 billion by 2025 and $300 billion by 2026 in its base case scenario. This scenario is driven by diverse participants including nation-states, US states, wealth management platforms, and public companies. In a bullish case, inflows could exceed $426 billion, absorbing over 4 million Bitcoin (19% of supply), thereby further tightening liquidity.

This institutional accumulation, coupled with the growth of the ancient supply, paints a picture where a significant portion of Bitcoin’s supply becomes illiquid. This could potentially heighten analysts’ price predictions due to increased demand.

To reach a price of $1 million per Bitcoin, a market capitalization of $21 trillion is needed, a tenfold increase from the current $2.10 trillion with 19,880,604 BTC mined, which constitutes 94.66% of the 21 million total. The fixed supply and growing illiquidity could facilitate BTC’s next big milestone. Historical trends after the halving events (2013, 2017, 2021) show rallies driven by reduced supply growth and rising demand, suggesting that current dynamics could lead to a similar outcome.

However, certain challenges still exist. After the 2024 US election, the ancient supply declined on 10% of days—almost four times the historical average—indicating that even long-term holders can sell during periods of volatility. Similarly, five-year holder supply decreased 39% of days post-election, three times the typical rate, correlating with sideways price action in Q1 2025.

This suggests that while illiquidity trends are strong, market conditions can trigger supply increases, potentially moderating price appreciation. However, Bitwise noted $35 billion in sidelined demand in 2024 due to risk-averse policies at Morgan Stanley and Goldman Sachs, which manage $60 trillion in client assets. Its bear case projects over $150 billion in inflows, while the bull case exceeds $426 billion, absorbing 4,269,000 BTC, underscoring significant demand potential.

In conclusion, Bitcoin’s ancient supply and projected institutional inflows paint a picture of increasing scarcity. While reaching $1 million is a lofty target, the current trajectories suggest it is a realistic price target.

The post Longstanding Bitcoin Holders Surpass Newly Mined BTC Supply, Fuelling Price Speculation appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

Bitcoin’s Demand Shocks

In the past one and a half years, Bitcoin exchange balances have dipped by a million BTC, marking a 30% decline, mainly as a result of heightened holdings by ETFs and other acquisition entities. These tools are channeling funds from conventional equity and fixed income investors into the crypto realm.

The drop in exchange balances is perceived as a bullish indicator, signalling a shift towards long-term holding patterns. As more institutional offerings enter the market and certain governments mull over including Bitcoin in their reserves, Sygnum sees the potential for demand shocks and upward volatility. These elements, according to the bank, pave the way for a potential prolongation of the current bull run.

As institutional acceptance fuels Bitcoin’s upward trajectory, governmental actions hint at a growing role for the asset on both state and national scales.

Global Interest in Bitcoin Reserve Adoption Grows

Three US states have recently endorsed bills supporting Bitcoin’s inclusion in government reserves, with New Hampshire leading the charge by being the first to sign such a bill into law. Texas is expected to follow suit, given the public support from the state’s governor. International interest is also on the rise. The government of Pakistan and the Reform UK party, presently leading in the British election polls, have both revealed plans to explore central bank Bitcoin reserves.

Meanwhile, policy think tanks in China have proposed similar ideas, and unconfirmed news suggests that silent accumulation might already be in progress. While no official Bitcoin purchases have started under these approved schemes, Sygnum analysts speculate that actual acquisitions could serve as a significant price catalyst.

The blend of rising demand and the potent signal of state and national entities entering the market might stimulate extensive institutional interest and hasten Bitcoin’s mainstream adoption.

The post Tightening Bitcoin (BTC) Supply Poised to Trigger Next Price Upswing appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

The Bitcoin Perceived Demand metric by CryptoQuant reveals a severe drop to a negative 142 on March 13. Following a positive trajectory since September 2024 and reaching a peak around December 2024, the demand dipped considerably and remained on the decline since March 2025.

Concerns over an extended trade conflict, geopolitical instability, and persistently high inflation rates above the Federal Reserve’s 2% target are prompting traders to withdraw from risky assets and seek refuge in safer options like cash and government securities.

Post-election enthusiasm has fizzled out in the wake of the White House Crypto Summit on March 7, which left investors with mixed sentiments. The realities of economic uncertainty and political machinations are hitting home.

Contrary to the underwhelming CPI inflation data released on March 12, Bitcoin’s price fell sharply after the announcement. Crypto Exchange-Traded Funds (ETFs) have seen four consecutive weeks of outflows since February, with traditional financial investors seeking safer investment avenues.

Data from CoinShares indicates that crypto ETFs have seen an outflow of $4.75 billion over the past month, including $756 million from BTC investment vehicles alone.

Miserable market sentiment coupled with recession fears have spurred a panic sell-off, causing a significant drop in crypto prices. Since President Trump’s inauguration on January 20, the Total3 Market Cap, excluding Ethereum (ETH) and BTC, has plunged over 27% from $1.1 trillion to around $795 billion.

Bitcoin’s price too has experienced a significant dip of over 22% from a peak of $109,000. Since March 9, Bitcoin has been trading below its 200-day exponential moving average (EMA), with occasional dips below the 200-day EMA in February.

Bitcoin’s Average True Range (ATR), an indicator of volatility, now stands at over 5,035, suggesting considerable price fluctuations as the market contends with macro factors. According to crypto analyst Matthew Hyland, Bitcoin needs to secure a weekly close above $89,000 to avoid a further correction down to $69,000.

This article does not provide investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.

The post Bitcoin’s Perceived Demand Plummets to Record Low in 2025, CryptoQuant Reports appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.