Ki Young Ju, a prominent cryptocurrency analyst, drew attention to the U.S. regaining its supremacy in Bitcoin BTC/USD holdings, with the rise attributed to spot exchange-traded funds (ETFs) demand.
What Happened: On Tuesday, Ki Young Ju took to X to highlight the growing U.S To The Rest Reserve Ratio, a metric developed by his blockchain analytics firm CryptoQuant.
“The U.S. is regaining dominance in Bitcoin holdings. Its ratio compared to other countries is rising, driven by spot ETF demand,” Young Ju stated.
The ratio, which tracked known entities in the U.S. like exchanges, banks, and investment funds, against non-U.S. entities, rose from 1.35 beginning July to 1.43 as of Sept. 25.
Analysis of the chart showed a marked decline in the ratio after peaking at 1.50 in March. This phase until June, was characterized by higher weekly outflows, resulting in a net capital exit of around $2.37 billion, according to data from SoSo Value.
But since July began, inflows into Bitcoin ETFs have increased, and until Sept. 25, the 11 ETFs have raked in $3.41 billion in net inflows.
Why It Matters: The increasing dominance of the U.S. in Bitcoin holdings signifies a growing institutional adoption of the cryptocurrency. Bloomberg ETF analysts James Seyffart and Eric Balchunas predicted last month that within a year, U.S. ETFs would hold more Bitcoin than Satoshi Nakamoto, the pseudonymous creator of Bitcoin.
For context, Nakamoto was purported to have 1.1 million Bitcoin as of February 2024, according to on-chain analytics platform Arkham Intelligence.
As of this writing, Bitcoin worth more than $58 billion was held in U.S. ETFs, with BlackRock’s iShares Bitcoin Trust ETF IBIT having a nearly 40% dominance.
Price Action: At the time of writing, Bitcoin was exchanging hands at $63,855.18, recording a marginal gain of 0.09% in the last 24 hours, according to data from Benzinga Pro.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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