CoinShares Report: ETFs Bitcoin Demand is Surpassing Production
According to Santiment, the trading volume in the Bitcoin ETF market surged to $7.64 billion this week. This growth is attributed to an increasing presence of institutional investors in the cryptocurrency space, as noted by Anthony Pompliano.
James Butterfill, head of research at CoinShares, highlighted that the demand for Bitcoin is surpassing its production rate. This is evident as miners produce 900 BTC daily, while crypto funds are buying approximately 2,800 BTC during the same time.
The rising interest from institutional investors has also led to a decrease in exchange reserves of digital currency by 28% from last year. This trend has put pressure on the market, resulting in the explosive growth of Bitcoin in the latter half of February.
The analyst from CoinShares further emphasized that traders are now focused on buying BTC rather than being guided by the policies of the US Federal Reserve, despite the risks of a potential tightening monetary policy in March.
This shift in strategy can be attributed to the emergence of crypto funds in the American market that directly invest in digital currency.
